Insider activity reports for Coinbase’s COIN share indicate that several early investors and executives sold billions of shares shortly after COIN’s direct listing. While the documentation initially indicated that several executives were selling a high percentage of their stake in the company, a Coinbase representative told Cointelegraph that the sellers retain strong ownership positions.
Data from capital market laboratories and confirmed by the submission on Coinbase’s investor relations website, show that a total of 12,965,079 shares were sold by insiders, valued at more than $ 4.6 billion at COIN’s $ 344.38 per share on Friday .
Notable deals include Coinbase chief financial officer Alesia Haas, who sells about 255,500 shares at a price of $ 388.73 (although her Form 4 states that she retains options), while Brian Armstrong, CEO, 749,999 shares sold in three transactions at different prices, for a total of $ 291,827,966.
According to its release of Form 4, Armstrong holds more than $ 300,000 worth of shares. However, in a submission prior to the direct listing, it was reported that he owned 36,851,833 shares, indicating that he had sold just over 2% of his stake in the company.
it makes the rounds and is so misleading – details matter!
each of these executives has tons of uninvested options that make up the bulk of their holdings – in fact, they each sold less than 10% of their total shares https://t.co/LP4uKK1Nuq
– Meltem Demirors (@Melt_Dem) 17 April 2021
The data from Capital Market Laboratories did not indicate that directors or insiders bought additional shares, but only sold them. The sales can also be seen on OpenInsider’s SEC Form 4 screener.
A Coinbase representative told Cointelegraph that the percentage of shares of each executive is not accurately reported by these reporting services, and that the sales represent only a fraction of the executive and insider ownership.
The reports rushed and entertained on social media, with many observers comparison the sales to a classic ‘pump and shower’ in which insiders and team members pour tokens into retail liquidity shortly after listing.
lolol wtf pic.twitter.com/ezZx5F8ua9
– Dereck Coatney (@DereckCoatney) 17 April 2021
While early investors and executives wanted to make money, there are at least a handful of big buyers. Hedge fund manager Cathie Wood places a big bet on the stock market after buying more than $ 350 million worth of shares for three different Ark ETFs.
Similarly, many Coinbase employees now own a share in the company, as 1700 Coinbase staff each donated 100 shares as a ‘thank you’ from the company.
Earlier this year, Coinbase was embroiled in a series of negative headlines regarding the handling of CEO Brian Armstrong, dealing with a new policy that limited the focus on political and social issues at work. Armstrong insisted the company remains ‘mission-oriented’, and the company’s mission includes a goal to ‘become the leading brand in helping people convert digital currencies into and out of their local currency.’