Coinbase insiders dump nearly $5 billion in COIN stock shortly after listing

Insider exercise reviews for Coinbase’s COIN inventory point out that a number of early traders and executives dumped billions in fairness shortly after COIN’s direct itemizing, with at the very least one C-suite director cashing out their stake within the cryptocurrency trade solely. 

Knowledge from Capital Market Laboratories and confirmed by filings on Coinbase’s Investor Relations web site reveals a complete of 12,965,079 shares offered by insiders, price over $4.6 billion at COIN’s $344.38 per share Friday shut.

Notable transactions embrace Coinbase CFO Alesia Haas selling all of her 255,500 shares at a value of $388.73, whereas CEO Brian Armstrong sold 749,999 shares in three transactions at varied costs, netting a complete of $291,827,966. He retains 300,001 shares price over $1 billion. 

Capital Market Laboratories’ information didn’t point out that any administrators or insiders bought further shares, solely offered. 

The gross sales prompted jeering and amusement on social media, with many observers likening the gross sales to a basic “pump and dump” through which insiders and group members dump tokens into retail liquidity shortly after an inventory.

Whereas early traders and executives appeared to money in, there are at the very least a handful of main patrons. Hedge fund supervisor Cathie Wooden is putting a giant guess on the trade, having bought over $350 million in shares for 3 totally different Ark ETFs. 

Likewise, many Coinbase staff now have stake within the firm, as 1,700 Coinbase employees had been gifted 100 shares every as a “thanks” from the corporate.

Earlier this yr, Coinbase was embroiled in a string of detrimental headlines referring to CEO Brian Armstrong’s dealing with of a brand new coverage that restricted give attention to political and social points at work. Armstrong insisted that the corporate stay “mission targeted,” and the corporate’s mission features a objective of turning into “the main international model for serving to folks convert digital forex into and out of their native forex.”