Four Coinbase leaders have sold off large amounts of stock since February.
Four Coinbase executives sold off approximately $1.2 billion of shares in a series of sales beginning this February.
Those executives include co-founder Fred Ehrsam, CEO Brian Armstrong, COO Emilie Choi, and CPO Surojit Chatterjee.
Coinbase’s stock fell in value this month, seemingly due to lost profits in a weakening cryptocurrency market.
Share this article
Four of Coinbase’s leading executives have sold over $1 billion in shares, according to reports from the Wall Street Journal.
Executives Sold Stocks for $1.2 Billion
The Wall Street Journal has analyzed regulatory recent filings from Coinbase and found that four of the company’s leading executives have earned $1.2 billion from stock sales since February.
According to the report, Co-founder and CEO Brian Armstrong and his living trust sold shares for $292 million. COO Emilie Choi exercised options at a cost of $9.7 million and sold her shares for $226 million. Co-founder Fred Ehrsam sold the most stock, earning nearly $500 million from his shares. Finally, CPO Surojit Chatterjee exercised options at a cost of $6 million and earned $110 million by selling shares.
It seems that each individual still owns shares of the company’s stock. A Coinbase representative told the Wall Street Journal that the executives “maintain large positions in the company, reflecting their commitment to our long-term opportunities.” Ehrsam, notably, bought back $75 million of Coinbase’s stock this month, even as prices plunged downward.
Will Coinbase Stock Recover?
The value of Coinbase’s stock (COIN) is $75.32 as of Wednesday, May 26. That price is close to its earlier low this month of $53.72.
Though executive sales took place when the stock had a somewhat higher value, it seems that declining prices motivated at least some of the sales. The company’s stock opened at $381 in April 2021, and Coinbase executives sold at prices between $189 to $422.
Coinbase’s declining stock value is likely the result of a weak crypto market. Bitcoin is now worth $28,900—its lowest value since December 2020. Poor market conditions caused Coinbase’s year-over-year revenue to drop by 27% this month.
Despite these issues, Coinbase’s stock has a promising outlook according to some analysts. One Cowen analyst suggests that COIN has a 27% upside and target of $85, based mainly on Coinbase’s approaches to security and regulatory compliance.
Coinbase was also added to the Fortune 500 list this week; it is the first cryptocurrency exchange to earn that status.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.