Coinbase Leaders Net $1.2 Billion in Share Sales
Top Four Coinbase Coins 7.80%
Officials of Global Inc. has raised a combined total of more than $1 billion in stock sales since the crypto exchange went public last spring, a period during which the company’s shares fell about 80%.
Co-founders Brian Armstrong and Fred Ehrsam, as well as President and CEO Emilie Choi and Chief Product Officer Surojit Chatterjee, together made approximately $1.2 billion in proceeds from the stock sale. from the day the San Francisco-based company began trading through February of this year, according to a Wall Street Journal analysis of regulatory filings.
They sold shares for between $189 and $422. Coinbase opened at $381 on April 14, 2021, first trading day. On Friday, the stock closed at $75.32.
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Cryptocurrencies have fallen significantly this year as investors dumped risky assets, worried about rising interest rates and rising inflation. Coinbase investors suffered even more. Bitcoin is down 25% in May through 5 p.m. ET Friday, while Coinbase is down about 33% this month.
Some analysts say investors expect executives – especially founders – to sell shares during or after an initial public offering after their shares are sold. locked for too long.
“These Coinbase executives maintain major positions within the company, reflecting their commitment to our long-term opportunities,” a Coinbase spokesperson said.
According to the Journal’s analysis of regulatory filings, Armstrong and his living trust sold the stock for a total of $292 million. He still holds a controlling stake in the company, with 59.5% of voting rights, according to an April regulatory filing.
Ms. Choi exercised the option at a cost of $9.7 million and sold the stock for a total of $226 million, while Mr. Chatterjee exercised the option at a cost of $6 million and sold the stock. with total proceeds of $110 million.
Surojit Chatterjee, product manager at Coinbase, exercised the option at a cost of $6 million and sold the stock for a total of $110 million.
Image:
Samyukta Lakshmi / Bloomberg News
Mr. Ehrsam pocketed nearly half a billion dollars in stock sales during the period. Earlier this month, when shares fell to a low, Mr. Ehrsam purchased $75 million worth of stock on behalf of the crypto investment firm he co-founded, Paradigm One LP. earlier this week on behalf of Model One.
A large portion of the stock sales occurred on the first day of trading, as all four stocks sold on Coinbase’s direct listing. In direct listings, early investors typically sell a portion of their total holdings to allow outsiders to buy into the company on the trading day. Such a sale is crucial for a direct listing to go smoothly, as the company typically doesn’t sell any shares, as opposed to an initial public offering.
Write to Corrie Driebusch at corrie.driebusch@dowjones.com and Tom McGinty at Tom.McGinty@wsj.com
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Appears on May 28, 2022, print edition as ‘Coinbase operators pocket $1.2 billion.’
https://www.wsj.com/articles/coinbase-leaders-net-1-2-billion-in-share-sales-11653606214?mod=rss_markets_main Coinbase Leaders Net $1.2 Billion in Share Sales
