Coinbase CEO Brian Armstrong Sells 2% Stake

Coinbase CEO Brian Armstrong has revealed plans to sell 2% of his holdings in the crypto exchange to fund science and technology development that will solve some of the world’s biggest problems.

According to Armstrong, some of the companies he plans to fund with the sale include New Limit, which focuses on extending human lifespans through epigenetic reprogramming, and Research Hub.

Coinbase CEO Brian Armstrong said the announcement of the sale was meant to avoid misinterpretation. He reiterated that he remains very bullish on crypto and is focused on Coinbase’s growth.

He said:

“For the avoidance of doubt, I intend to be CEO of Coinbase for a very long time, and I remain super bullish on crypto and Coinbase. I am fully dedicated to growing our business and advancing our mission, but I’m also happy to contribute in a different way.

Performance of COIN shares

Armstrong currently owns a 16% stake in Coinbase and controls 59.5% of the voting shares. Given the recent performance of COIN stocks and the release of several crypto C-suite executives, Brian Armstrong’s transparency is understandable. A sudden sale of 2% of its COIN holdings could spark rumors that could further hurt the exchange’s battered stocks.

Coinbase stock price fell 8% on Friday and COIN stock price is trading at $63.59. COIN stock price is down 74% from year-to-date metrics. More importantly, two top financial institutions – JP Morgan and Goldman Sachs – downgraded their ratings to sell.

Year-to-date performance of Coinbase stocks (Source: NASDAQ)

Meanwhile, the drop in COIN stock price is not surprising as it reflects the general performance of the crypto industry. The price of Bitcoin, alongside other digital assets, is trading away from all-time highs.

In August, CEO Brian Armstrong said the company was anticipating a long winter. The exchange was also one of the companies that laid off their employees during the crypto bear market.

Recent Coinbase Partnerships

Coinbase has continued to take actions that suggest it is strengthening its operations. It recently entered into a partnership with Google Cloud to enable crypto payments. The exchange also obtained a license to operate in Singapore, signaling further expansion in Asia.

Prior to that, the US-based crypto exchange entered into a partnership with the world’s largest asset manager, BlackRock. The goal is to connect Coinbase Prime to Aladdin for BlackRock customers to manage and trade Bitcoin.

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

Comments are closed.