By
Godfrey Benjamin
May 13th, 2024
While Coinbase executives have engaged in pre-planned and periodic stock sales, other major COIN holders have chosen a different approach.
Coinbase Global Inc (NASDAQ: COIN), the publicly listed American crypto exchange has witnessed an astounding surge in its stock price despite facing a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly offering unregistered securities.
Over the past month, Coinbase shares have soared by a remarkable 51%, highlighting the resilience and investor confidence in the company amidst a challenging legal battle. In early June, Coinbase was served with a lawsuit by the SEC. The lawsuit accuses Coinbase of operating as an unregistered national securities exchange and broker, conducting business in violation of regulatory requirements since at least 2019.
The lawsuit claims that Coinbase failed to comply with regulatory obligations and obtain necessary operations licenses, as Federal Securities Laws mandated. Despite this bad legal outlook, Coinbase has defied expectations, demonstrating resilience and attracting investor confidence.
According to TradingView statistics, Coinbase shares have increased by 51% in a little more than a month. From approximately $52 per share on June 6, the stock climbed to $78.7 on July 7. This significant stock increase underscores the market’s optimism regarding Coinbase’s ability to navigate the SEC lawsuit and maintain its position as a leading player in the crypto industry.
Amidst this surge, notable Coinbase stakeholders, including senior Coinbase executives, have been selling a portion of their stock holdings. On July 6, a combined total of 88,058 COIN stocks, valued at approximately $6.9 million, were sold by the executives, including CEO Brian Armstrong.
According to a recent SEC filing, Gokul Rajaram, a board member, sold 4,580 COIN shares, while Chief Legal Officer Paul Grewal sold 1,818 COIN shares. Chief Accounting Officer Jennifer Jones also participated in the stock sales, selling 7,335 COIN shares.
Furthermore, Jennifer Jones had previously sold 74,375 Coinbase shares on June 29, which resulted in a net gain of $5.2 million.
Coinbase Stock: Other Major Holders Continue to HODL
While Coinbase executives have engaged in pre-planned and periodic stock sales, other major COIN holders have chosen a different approach. These “HODLers,” a term derived from a popular crypto meme encouraging long-term holding, have maintained their positions in COIN despite market fluctuations and executive sales.
For example, ARK Invest, known for its active involvement in innovative and disruptive technologies, including cryptocurrencies, made a substantial investment in Coinbase by purchasing an additional 400,000 shares in early June.
This investment signaled ARK Invest’s confidence in the future prospects of Coinbase and its potential as a leading player in the crypto industry.
Cathie Wood, the founder and CEO of Ark Invest has confirmed her unshakeable optimism in Bitcoin’s future potential, predicting that the digital currency will eventually reach an astounding price of $1 million per coin. Wood’s upbeat forecast reflects her long-term view of Bitcoin and its transformational power.