Some executives and directors of cryptocurrency exchange Coinbase are reportedly planning to sell a substantial amount of shares of the crypto trading platform.
According to a recent report, three executives and two directors at Coinbase will sell as many as five million shares, worth over $900 million, at a price of $182.88 apiece.
Armstrong to Sell 3,750,000 Shares
Before the report, Brian Armstrong, co-founder and CEO of Coinbase, initially set up a Rule 10b5-1 plan on August 15 to sell up to 3,750,000 shares of class A common stock.
These shares can only be issued upon converting class B shares held by “The Brian Armstrong Living Trust,” for which the CEO serves as trustee.
On October 30, Coinbase revealed the adoption of the trading plans in a form submitted to the United States Securities and Exchange Commission (SEC).
Armstrong’s plan is scheduled to begin on November 18 and end no later than November 14, 2025.
According to the report, on September 12, the CEO sold Coinbase stock by converting 15,375 Class B shares into the same number of Class A shares and then selling them for $2.5 million at an average price of $161.28 per share.
Just a Small Portion of Insiders’ Holdings
Coinbase’s Chief Financial Officer (CFO), Alesia Haas, also noted that the sales account for a small portion of insiders’ total holdings in the company.
Haas adopted a plan to sell up 153,896 Class A shares on August 29. The plan also includes selling additional Class A shares to cover costs related to Haas’s exercise of stock options, which involve up to 686,873 shares of Class A and Class B common stock.
This plan is set to start on January 2, 2025, and conclude by December 31, 2025.
Company insiders use these plans to avoid the appearance of trading based on confidential information. The plans automatically execute trades once specific conditions, like price, volume, and timing, are fulfilled.
So far, Coinbase stock has achieved a modest 5.1% gain this year, with Armstrong controlling 52% of Coinbase’s voting power through his majority stake in Class B shares.
