CJ - Cryptocurrency Enthusiast
Due to rising interest rates and inflation, investors have fled riskier crypto assets, causing cryptocurrency prices to collapse this year. Coinbase investors have been hurt far worse. In May, Bitcoin had lost 22% of its value, while Coinbase had lost 40% of its value.
Four of the company's senior executives have made well over $1 billion by selling stock, even though the cryptocurrency exchange's shares have fallen by more than 80% since its initial public offering in 2021. Since the San Francisco-based firm went public, Brian Armstrong, Fred Ehrsam, President Emilie Choi, and Chief Product Officer Surojit Chatterjee have collectively transacted $1.2 billion worth of stock, according to regulatory data obtained by the Wall Street Journal.
Armstrong and his revocable trust sold shares for a total of $292 million, according to the filings. With 59.5 percent voting power, he still has a majority position in the firm. Choi made a total of $226 million in income from option exercises and stock sales, while Chatterjee made a total of $110 million in earnings from option exercises and stock sales.
Ehrsam made almost $500 million in stock trades during that time. When the Bitcoin price plunged to new lows, he bought $75 million worth of stock in Paradigm One LP, the cryptocurrency trading company he co-founded.
Since all four companies sold stock in Coinbase's direct listing, a sizable portion of the shares were sold on the first day of trading. A corporation can raise money through an initial public offering (IPO) by offering a portion of its stock to the general public. These transactions are necessary for direct listings to function because, unlike going public, the company often does not sell any shares.