Coinbase CEO Plans to Sell Shares Worth Millions

Brian Armstrong, Coinbase's CEO, promised to sell 2% of his shares in the company to invest in new ventures, a pledge he has now fulfilled. Between November 2022 and November 2023, he sold roughly 790,000 shares, making almost $53.2 million. This sale was based on an average price of $67.37 per share, according to OpenInsider and SEC filings. However, with Coinbase's stock price now around $164, Armstrong's sold stake would be valued at $129.5 million today, meaning he missed out on $76 million by selling earlier.

Armstrong's sale was aimed at funding innovative startups. He co-founded NewLimit, aiming to extend human lifespans by altering human cells, and ResearchHub, designed to revamp the academic publishing model with a blend of open-source and cryptocurrency funding. Both ventures have attracted significant investment, with NewLimit securing $40 million and ResearchHub $5 million from notable investors.

Despite reaching his 2% sale target, Armstrong has not ceased selling. Since November, he sold an additional 316,150 shares, nearing another 1% of his stake. These sales have netted him $44.6 million, averaging $141 per share. This ongoing sale aligns with a new trading plan revealed in a Coinbase quarterly report, allowing him to sell up to 1.8 million shares, roughly 5% of his remaining stake, potentially valued at around $295 million. Moreover, other Coinbase executives, including the Chief Legal Officer, Chief Operating Officer, and director Fred Ehrsam, are set to sell up to 3 million shares, valued at approximately $489 million. This sell-off follows Coinbase's direct listing, which saw insiders selling $5 billion worth of stock, leading to a significant drop in stock value initially. However, COIN has since recovered, reflecting a broader uptrend in the cryptocurrency market.