Co-founders of the Coinbase bitcoin exchange Brian Armstrong and Fred Ehrsam, along with its top executives Emily Choi and Surajit Chatterjee, collectively sold shares worth $1.2 billion in the period from the IPO through February this year. The calculations were made by Wall Street Journal.
Journalists analysed filings with the SEC. The largest share of sales occurred on the first trading day. The market debut was via direct listing, which directly implies the sale of shares by its founders and the team.
Sales of securities took place in a range from $189 to $422. The opening price on IPO day stood at $381. On May 26, Coinbase’s shares closed at $69.87.
“Coinbase executives hold large stock positions, reflecting their commitment to our long-term prospects,” — said a Coinbase spokesperson.
Brian Armstrong holds 59.5% of the voting shares. During the period he earned $292 million. Emily Choi and Surajit Chatterjee sold shares worth $226 million and $110 million, respectively.
The departing Fred Ehrsam became almost $0.5 billion richer. On behalf of his venture-capital firm Paradigm, he subsequently purchased Coinbase shares worth $75 million.
Since the start of the year, Coinbase’s stock has fallen 72.3%, and from the IPO it is down 81.7%.
As noted, Coinbase’s net loss for the first quarter was $1.98 per share, nearly double analysts’ expectations.
In May, media reports emerged about cost optimization at the cryptocurrency exchange after a weak start to the year.
Later Coinbase became the first cryptocurrency company to appear on the Fortune 500 list.
Armstrong and Ehrsam were listed among Forbes’ 400 richest Americans for 2021.
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