Reports of insider activity regarding COINBASE shares suggest that a higher number of early investors and executives sold billions in equity shortly after COIN shares were listed directly on the stock exchange. While the original reports initially indicated that much of the management had sold a high percentage of its stake in the company, a Coinbase representative said the sellers maintained strong ownership positions.
Data from capital market laboratories, confirmed by applications to Coinbase’s Investor Relations, show that insiders sold a total of 12,965,079 shares. Making it more than $ 4.6 billion with the price of $ 344.38 per share on Friday, April 16, 2021.
One of the significant transactions belongs to Coinbase CFO Alesia Haas, who has sold approximately 255,500 shares at a price of $ 388.73 / share.
Figure 1: Table with listed major Coinbase shares salesCEO Brian Armstrong sold 749,999 shares in three transactions at various prices, bringing the total to $ 291,827,966 . According to information released on Form 4, Armstrong will retain more than 300,001 shares worth more than $ 1 billion after the sale. However, a report from before Coinbase was listed said Armstrong owned 36,851,833 shares, indicating that he had sold just over 2% of his stake in the company.
A representative of Coinbase stated that the percentages of each manager's assets are not accurately reported in this report and that revenues represent only a fraction of executive ownership and only a portion of inside information.
Figure 2: 4H Chart of COIN/USDTThe news sparked sarcastic remarks on social media addressed at Coinbase management, with many observers likening the sale to a classic pump and dump, in which insider members flipped tokens into retail liquidity shortly after listing.
While the initial investors and executives were looking for collection options, there are also several major buyers. Hedge fund manager Cathie Wood is betting on Coinbase in bulk, buying shares worth more than $ 350 million for three different archival ETFs.
Likewise, many Coinbase employees now have a stake in the company, as 1,700 of them have been given 100 shares each as a token of gratitude.
Earlier this year, Coinbase was embroiled in a series of negative headlines about Brian Armstrong’s new policy spree. It limited the focus on political and social issues in the workplace with Armstrong insisting that the company should remain focused on becoming a leading global brand that helps people convert digital currency to fiat currency and back.
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