Coinbase spokesperson stated that four of the top leaders are still in large positions on the exchange, which is a sign of their commitment to long-term opportunities.
After going public earlier in the year, co-founders Brian Armstrong, Fred Ehrsam and Chief Operating Officer Emilie Chui have collectively raked in $1.2 billion from stock sales.
Coinbase Officials Earn Over $1 Billion
According to Wall Street Journal analysis of regulatory filings this was the same time when shares in the San Francisco-based company saw an 80% drop. According to Coinbase, the four leaders of Coinbase sold the shares at prices ranging from $189 to $422. Coinbase’s initial trading price was $381 on its first day. The stock trades at approximately $75 as of the writing of this article.
WSJ reported that Armstrong and his trust sold shares to raise $292 million. The co-founder still holds a majority of the stock exchange, holding just over 59%. Ehrsam was responsible for approximately $500 million in stock sales over the same period. According to reports, the co-founder bought $75 million worth shares from Paradigm One LP at his request. This was after the stock plunged to serious lows earlier in the month.
Choi, on the other hand sold shares to raise $226 million and exercised options worth $9.7 million. Chatterjee, on the other hand, sold shares for $110 million and exercised options worth $6 million.
Fortune 500 Foray
Coinbase, which went public in 2013, has formed strategic partnerships and expanded its reach into sports marketing (from ESL to NBA). The slump in crypto markets caused Coinbase’s Q1 revenue to drop to half of the amount it earned the previous quarter. Simultaneously the monthly transactions volume of users fell dramatically. Coinbase was the first crypto company to be listed on the Fortune 500 earlier this week.
Coinbase’s first quarter results were disappointing and the situation worsened amid a global crypto-wide crisis. Fortune reported that Coinbase had managed to survive in the “freakish circumstances of COVID”, with a revenue totalling $7.8 billion for fiscal 2021. Fortune ranked it 437th among the largest US companies.
Marla Brooks – Financial Analysis
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