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Weekly Inside Portfolio Update
Itās nearly two months since we launched our Insider Portfolioāand what a start itās been! Last weekās U.S.āChina tariff truce gave global indices a welcome lift. Wondering which stock stole the spotlight in our portfolio this week? Keep reading below! ā¬ļø
š„ 1st Place: Coinbase Global (COIN) ā +27.55% in 5 days
Coinbase didnāt merely benefit from the recent crypto momentumāit capitalised on it decisively, culminating in its inclusion in the S&P 500. This is no small achievement for a crypto-native firm operating in a market still wrestling with the question of whether Bitcoin is ādigital goldā or speculative folly.
What drove the rally?
š A major milestone: Coinbase is officially added to the S&P 500 this weekāa strong signal of increasing institutional legitimacy for both the company and the broader crypto industry.
š° Financial highlights from the latest quarterly results:
Total revenue: $2.0 billion
Net income: $66 million
Adjusted EBITDA: $930 million
Subscription and services revenue ā particularly from stablecoins and Coinbase One ā rose 36.6% year-on-year
š The caveat? Net income declined significantly from $1.18 billion last year, reflecting the impact of lower crypto prices.
Cybersecurity under the spotlight
Coinbase also disclosed a recent cyber attack affecting approximately 1% of its customer data. The breach, reportedly involving bribed contractors, led to a failed extortion attempt of $20 million. Coinbase refused to pay and instead committed to reimbursing all impacted usersāan admirable response under pressure.
The incident is expected to cost the firm up to $400 million, and although shares briefly dropped by 4.1%, the broader message is clear:
As crypto matures, so do the threatsāand the stakes.
As weāve observed in previous editions, cybersecurity is fast becoming a critical theme in both crypto and broader tech markets. We see strong potential ahead for well-positioned players in that space, and continue to monitor it closely.
āļø Regulatory clouds lingerābut may not rain
Coinbase also faces renewed regulatory scrutiny. The New York Times reported that the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase misled investors in its 2021 IPO filings, specifically around its claim of over 100 million āverified usersāāa figure later revised and removed for being inaccurate.
Coinbase maintains it acted transparently and in good faith, noting that since 2023, it has focused on more meaningful engagement metrics such as monthly active users. The company is cooperating with the SEC, and while tensions with the previous administration under Gary Gensler were notable, several earlier probesāsuch as one into USDC earningsāhave already been closed.
Legal experts suggest the current investigations are unlikely to materially impact the companyās future, especially as industry commentators criticise the SECās stance amid ongoing ambiguity in crypto regulation.
š§ 2nd Place: The Metals Company (TMC) ā +13.04% this week
When we first spotlighted TMC two weeks ago, its share price was under pressure. Nonetheless, we chose to maintain its position within our Insider Portfolioāa decision grounded in conviction rather than short-term sentiment.
This week, that conviction was rewarded. TMC advanced 13.04%, buoyed by a series of strategic developments:
A $37 million strategic investment led by institutional investors
Submission of the first-ever U.S. commercial permit application for deep-sea mineral recovery
Q1 updates indicating reduced exploration expenses and a focus on long-term capital planning
Why does this matter?
We have consistently highlighted critical minerals as a core front in the evolving global supply chain landscape. TMCās incremental but meaningful progress on the regulatory front validates our early positioning.
Admittedly, the company remains a speculative play, and deep-sea mining is not without its challengesālogistical, regulatory, and environmental. However, in terms of long-term strategic relevance, TMC continues to outperform its current scale.
Last week, our Insider Portfolio delivered solid performanceāwith one carefully selected new addition joining the ranks. š For full breakdowns, trade rationale, and sector outlooks, unlock our Premium Friday Edition. Just $6/month (or Ā£5/month).
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This information is for guidance purposes and may become out of date at any given time. It is not investment advice. Investments can rise and fall in value. Genuine Impact wonāt make any assessment of whether the investments you choose are appropriate or suitable for you. If you are unsure of the suitability of any investment, investment service or strategy, you should seek independent financial advice. Past performance does not indicate future results. Your capital is at risk.
š¬ Like what youāre reading? Share this with a curious friend who still thinks crypto is a phase and the sea floor is just for fish.
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