key takeaways
- Four Coinbase executives sold approximately $1.2 billion worth of shares in a series of sales that began this February.
- Those executives include co-founder Fred Ehrsam, CEO Brian Armstrong, COO Emily Choi and CPO Surojit Chatterjee.
- Coinbase shares fell in value this month, seemingly due to losses in the weak cryptocurrency market.
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According to the report, four key executives of Coinbase have sold more than $1 billion in shares wall street journal,
Executives sold stock for $1.2 billion
wall street journal has analyzed recent regulatory filings from Coinbase and found that four of the company’s key executives have made $1.2 billion from stock sales since February.
According to the report, co-founder and CEO Brian Armstrong and his Living Trust sold the shares for $292 million. COO Emily Choi exercised the options at a cost of $9.7 million and sold her shares for $226 million. Co-founder Fred Ehrsam sold most of the stock, earning nearly $500 million from his shares. In the end, CPO Surojit Chatterjee exercised the options at a cost of $6 million and sold the shares, earning $110 million.
It appears that each person still owns shares of the company’s stock. A Coinbase representative told wall street journal That executives “maintain large positions in the company, reflecting their commitment to our long-term opportunities.” Ehrsam, in particular, this month bought back $75 million of Coinbase stock, despite the price drop.
Will Coinbase Stock Recover?
As of Wednesday, May 26, the stock (COIN) of Coinbase is valued at $75.32. The price is close to its earlier this month low of $53.72.
Although executive selling occurred when the stock was priced slightly higher, it appears that the drop in prices prompted at least some of the selling. The company’s stock opened at $381 in April 2021 and Coinbase executives sold at prices between $189 and $422.
Coinbase’s falling stock value could be the result of a weak crypto market. Bitcoin is now priced at $28,900 – its lowest value since December 2020. Coinbase’s year-on-year revenue declined 27% this month due to poor market conditions.
Despite these issues, Coinbase’s stock has a promising outlook, according to some analysts. A Cowen analyst suggests that COIN has a 27% growth and a target of $85, based primarily on Coinbase’s approach to security and regulatory compliance.
Coinbase was also added to the Fortune 500 list this week; It is the first cryptocurrency exchange to earn this status.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.
