Lawrence Damilola
Coinbase Global Inc. (COIN) executives, including CEO Brian Armstrong, President Emilie Choi, and Chief Legal Officer Paul Grewal, have sold approximately $32 million worth of the company’s stock in the last 30 days.
The latest real-time insider trading data showed that 149 sales transactions were conducted without any reported purchases. According to the data, Brian Armstrong, Chairman and CEO of Coinbase, recently sold multiple tranches of shares of over $4 million on September 4 at various prices ranging from $168 to $179 per share to complete the total number of transactions. Emilie Choi, President and Chief Operating Officer, also sold on the same day, with sales amounting to several million dollars. Chief Legal Officer Paul Grewal was involved in similar sales transactions on August 28.
Coinbase execs, chief legal officer, president, CEO, dumped 32 million dollars of Coinbase stock in the past 30 days.
— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) September 8, 2024
Things you do when you're bullish. pic.twitter.com/dH8zMUilMX
According to a recent Securities and Exchange Commission filing, Lawrence J. Brock, the Chief People Officer, offloaded a notable amount of his company stock. The sold shares, part of the Class A Common Stock, fetched over $3.2 million, with individual share prices falling between $200.8284 and $211.3539. These sales started on August 23, 2024, and adhered to a trading plan Brock set up on June 2, 2023. This strategy enabled the company insiders to systematically sell their stock as part of their financial planning efforts, mitigating insider trading concerns by relying on previously arranged plans rather than current, private information.
These transactions follow earlier substantial sales by Coinbase executives. A lawsuit filed in May 2023 in Delaware Chancery Court alleged that Coinbase executives, including CEO Brian Armstrong and board member Marc Andreessen, avoided over $1 billion in losses by selling stock shortly after the company’s public listing two years ago. The lawsuit claims these executives used insider information to sell stock before releasing unfavorable financial information, which led to a sharp decline in Coinbase’s stock price.
The legal complaint stated that the company’s board chose a direct listing rather than a traditional initial public offering and rapidly sold $2.9 billion in stock before “material, negative information” became public. “Within five weeks, those shares declined in value by over $1 billion, and Coinbase’s market capitalization plummeted by more than $37 billion,” the complaint says. The case seeks the return of “ill-gotten gains” from Armstrong, Andreessen, and several other top executives and board members.
Market analysts have noted changes in their evaluations of Coinbase amid these transactions. Jefferies adjusted its price target for Coinbase shares to $220, maintaining a “hold” rating due to decreased trading volumes and a 27% decline in transaction revenue. Barclays, maintaining an “underweight” rating with a price target of $206, noted outflows in Ethereum Exchange Traded Funds, potentially affecting Coinbase’s trading volumes. Despite these adjustments, Coinbase reported $1.4 billion in total revenue and $596 million in adjusted EBITDA for Q2, with subscription and services revenue rising by 17%.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
