Top Coinbase Insiders Eyeing $900M Windfall in Planned Share Sales

• A total of up to 5 million COIN shares could be sold over the next year.
• Coinbase’s CEO Brian Armstrong could unload up to 3,750,000 shares.
• COIN stock has taken a tumble following a disappointing Q3 2024 earnings report.

Major Coinbase (COIN) insiders, including CEO Brian Armstrong, are set to unload $900 million of the company’s stock over the next year.

The move follows a disappointing Q3 2024 earnings report, which could suggest further performance declines from the exchange.

COIN Shares

According to a report  from Barron’s, three directors and two Coinbase executives are preparing to unload up to five million COIN shares, which at today’s price equates to over $900 million. It’s a strategic move that aligns with prior high-value sales.

As per an Oct. 30 filing, major shareholders in Coinbase entered trading plans under “Rule 10b5-1 ” to unload publicly traded Class A shares, which carry one vote, and non-public Class B shares of common stock, which carry 20 votes.

Plans automatically execute trades once certain conditions are met. This can include price, volume, and timing.

Coinbase Insiders

Notably, Coinbase CEO Brian Armstrong entered into a trade plan to potentially unload 3,750,000 shares of Class A common stock “upon conversion” to Class B common stock shares, which will begin on Nov. 18, 2024, and end on Nov. 14, 2025.

Coinbase co-founder Fred Ehrsam III plans to sell up to 866,122 Class A shares from late November. Chief financial officer Alesia Haas has earmarked 153,896 Class A shares, and chief legal officer Paul Grewal is looking to unload up to 151,005 Class A shares starting Dec. 2. Finally, Fred Wilson plans to commence a 50,000 Class A share stock sell-off on Nov. 7.

Q3 2024 Earnings

The news follows Coinbase’s meager Q3 2024 earnings report, which revealed that the exchange, among other major industry players, experienced quarter-on-quarter revenue declines.

COIN stock dropped to around $211 upon the report’s publication. Following the trade plan news, the stock  took yet another hit, dropping from $203 on Oct. 31 to $176 today, Nov. 4, and continues to slide in price.