Coinbase Leaders Net $1.2 Billion in Share Sales

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The haul taken by two co-founders and two executives contrasts with the sharp drop in shares since they became publicly available last year.

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He sold the shares at prices ranging from $189 to $422. Coinbase opened on the first day of trading on April 14, 2021 at $381. The stock closed at $67.17 on Wednesday.

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Cryptocurrencies have fallen dramatically this year as investors have abandoned riskier assets, worried about rising interest rates and rising inflation. Coinbase investors have suffered even more.
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Bitcoin was down 22% in May through Wednesday’s close, while Coinbase is down almost 40% this month.

Some analysts said investors expect executives—particularly founders—to sell the stock in or after an initial public offering after their shares have been closed for so long.

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“These Coinbase executives maintain large positions at the company, which demonstrates their commitment to our long-term opportunities,” a Coinbase spokesperson said.

Armstrong and his living trust sold shares for a total proceeds of $292 million, according to an analysis of the Journal’s regulatory filings. He still has a controlling stake in the company, with 59.5% of voting power, according to an April regulatory filing.

Ms. Choi exercised options at a cost of $9.7 million and sold shares for a total income of $226 million, while Mr. Chatterjee exercised options at a cost of $6 million and sold shares for a total income of $110 million .

Mr. Ehrsam generated nearly half a billion dollars in stock sales during this period. Earlier this month, as stocks plummeted, Mr. Ehrsam bought $75 million worth of shares on behalf of the cryptocurrency investment firm he co-founded, Paradigm One LP.

A large proportion of the share sales occurred on the first day of trading, as all four stocks were sold on Coinbase’s direct listing. In a direct listing, early investors usually sell part of their total holdings so that outsiders can buy into the company on the opening day of trading. Such a sale is important for a direct listing to run smoothly, as the company typically does not sell any shares, unlike an initial public offering.

Write to Corrie Driebusch at [email protected] and Tom McGinty at [email protected]

Credit: www.Businesshala.com /

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