Coinbase shares fell nearly 18% in April as co-founder and CEO Brian Armstrong gave up more than $3 million in company stock.
According to Dataruma dataArmstrong sold 59,460 shares for $3.46 million in 11 transactions between April 12 and April 26. A breakdown of the sales showed Armstrong sold 29,730 shares for $1.86 million in six transactions on April 10, before making five more deals on April 24. The Coinbase CEO sold 89,196 coins for $5.8 million in March.
All of these sales continue Armstrong’s trend of dumping COIN shares since November 2022. At the time, Armstrong revealed that he would sell 2% of his stake in the stock to fund two new startups – NewLimit and Research Hub.
Other Coinbase insiders are selling
Meanwhile, Armstrong isn’t the only Coinbase insider selling shares of the company. Other Coinbase executives, such as Chief Legal Officer Paul Grewal, Chief Accounting Officer Jennifer Jones, and Chief Human Resources Officer Brooke Lawrence, have sold shares of the company on several occasions over the past three months.
More broadly, Coinbase insiders have sold more than $5 billion in shares of the company since it went public. In comparison, only Two insiders They have bought the stock since it went public.
Sell-offs may hurt the value of the currency
While Coinbase’s stock started the year strong after bitcoin’s bull run, the stock appears to have run out of steam in the previous month after dropping nearly 18%, according to Tradingview. data.
During this period, the exchange’s stock peaked at $72 on April 11 before dropping dramatically to $53.79 as of press time. This decline coincided with Bitcoin experiencing a moderate sell-off due to rumors of the US government selling off its holdings.
Despite the stock’s poor performance, Cathie Wood’s Ark Invest Management has been consistently buying the stock. According to Cathesarc, the investment fund acquired more than $10 million in shares in April data.
Coinbase Regulatory Issues
As Coinbase executives sell shares, the company is drawing a battle line with financial regulators in the United States. The exchange has filed a firm response to the US Securities and Exchange Commission (SEC) regarding Wells’ notice it received regarding the sale of unregistered securities.
The listed company denied this and sued the SEC, asking the court to force the commission to provide regulatory guidance for the cryptocurrency industry.
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