Coinbase Execs to Cash Out Shares
A number of Coinbase’s senior managers, including CEO Brian Armstrong, intend to sell more than $900 million in shares, as reported by Barron’s.
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A number of Coinbase’s senior managers, including CEO Brian Armstrong, intend to sell more than $900 million in shares, as reported by Barron’s.
The U.S. Securities and Exchange Commission (SEC) filings show that the sales are planned between November 2024 and late 2025. The executives will use the “10b5-1 rule,” which enables company insiders to sell shares under specific conditions, sidestepping insider trading accusations.
The SEC’s announcement regarding the Coinbase share sale. Source: SEC
The document lists the executives intending to sell shares as follows:
- Brian Armstrong: Co-founder and CEO, with plans to sell up to 3.75 million shares.
- Alesia Haas: CFO, intending to sell up to 153,896 shares.
- Frederick Ernest Ehrsam III: Co-founder and Director, planning to sell up to 866,122 shares.
- Paul Grewal: Chief Legal Officer and Secretary, aiming to sell up to 151,005 shares.
- Fred Wilson: Lead Independent Director, looking to sell up to 50,000 shares.
Investor concern has surfaced regarding the potential impact on Coinbase’s stock price. However, the company reassures that these sales make up only a small fraction of the insiders' total holdings.
Armstrong last sold Coinbase shares on September 12, 2023, converting 15,375 Class B shares to Class A and selling them, along with other Class A shares, for $2.5 million. The average price per share was $161.28.
With 52% of voting power through his Class B shares, Armstrong retains full control over key decisions at Coinbase. Future Class A share sales will not diminish his influence, and this holds true for other executives as well.
In other news: Armstrong Spearheads Crypto's Stand Against the SEC
Coinbase remains transparent in stock dealings and promotes long-term employee investment in the company.
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