Brian Armstrong Executes on Pledge: Sells 2% Stake in Coinbase

1. Coinbase CEO Brian Armstrong sells a 2% stake, generating $53.2 million but leaving $76 million unrealized due to current stock values.
2. Proceeds from the stake sale fund cutting-edge startups, including NewLimit focused on cell reprogramming and ResearchHub.
3. Despite the initial 2% pledge, Armstrong continues selling Coinbase stock.

Coinbase CEO, Brian Armstrong, has fulfilled his commitment to sell a 2% stake in the company. He announced this move on Twitter a year and a half ago.

Between November 2022 and November 2023, Armstrong sold approximately 790,000 Coinbase shares, earning nearly $53.2 million. However, current Coinbase stock prices at $164 suggest that his 2% stake would now be valued at $129.5 million, leaving approximately $76 million unrealized.

Venturing into Cutting-Edge Startups

Armstrong’s intention behind selling the stake was to fund ventures at the forefront of other industries.

He co-founded NewLimit, focusing on reprogramming human cells to extend lifetimes, and ResearchHub.

The aim is to revamp academic and scientific publishing incentive systems using open source and crypto crowdfunding.

Continuous Sell-Off Despite Initial Pledge

Contrary to his initial pledge, Armstrong has not halted selling Coinbase stock.

In the three months following the 2% mark, he offloaded 316,150 shares, almost another whole percentage point of his stake. This rapid sell-off contrasts with the year it took him to sell the initial 2%.

Future Plans and Trading Plan Disclosure

Coinbase’s quarterly report filed last November revealed Armstrong’s entry into a trading plan.

This was designed to sell up to 1.8 million shares starting November 2023, potentially reducing his stake by nearly 5%.

This move could be worth around $295 million, given Coinbase’s current market value of just under $40 billion.

The disclosure also outlined trading plans for other Coinbase executives, including chief legal officer Paul Grewal, chief operating officer Emilie Choi, and director Fred Ehrsam. Together, they are in line to sell up to 3 million shares this year, currently valued at $489 million.

Coinbase’s Journey Post Direct Listing

Coinbase went public through a direct listing, witnessing significant insider selling during its first trading session. The executives and investors collectively sold $5 billion in stock. Despite an initial drop, Coinbase’s stock has recovered alongside the broader crypto market.

This ongoing sell-off by Armstrong raises questions about his future plans and the potential impact on Coinbase’s market dynamics.