Coinbase CEO Brian Armstrong Sells $291.8M In Shares On Opening Day

It’s been revealed that Coinbase insiders and investors sold $5 billion in shares in total during the exchange’s first day of trading on NASDAQ earlier this week, says a series of filings that have been made the other day with the US SEC.

Coindesk reveals that “CEO Brian Armstrong sold 749,999 shares in three batches at prices ranging from $381 to $410.40 per for total proceeds of $291.8 million, according to one filing.”

Armstrong sold about 1.5% of his stake

The same online publication notes that “While a Coinbase representative declined to comment due to the company being in a so-called “quiet period,” based on filings made before the listing, it would indicate Armstrong sold about 1.5% of his stake.”

Another filing discloses that Coinbase’s director and venture capitalist Frederick Wilson sold 4.70 million shares for proceeds of $1.82 billion.

It’s been also revealed that it’s not very clear how much of Coinbase Wilson is still holding he is listed on the SEC filing as holding at least 10% of shares in Coinbase – the exchange’s total market cap is $63.6 billion.

Someone on Twitter brought this up and said:

To this, Scott Melker responded with the following words: “they didn’t sell most near the top, that was fake news. They sold the shares they had to for a direct listing, a fraction of their holdings. They had to sell for buyers to have shares to buy.”

Another commenter said: “That is what a direct listing is. They sell their shares directly to the public. I don’t think any new shares were created, so there wouldn’t be a market if they didn’t sell.”

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I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.
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