This year, the value of cryptocurrencies has dropped by a lot as investors have moved away from riskier assets because interest rates and inflation are going up. Investors in Coinbase have been hurt much more than other investors. During May, Bitcoin’s value had dropped by about 22%, while Coinbase’s had dropped by almost 40%.
Even though Coinbase Global Inc. stock has lost more than 80% of its value since the company’s initial public offering (IPO) in 2021, four of the company’s top executives have made more than a billion dollars by selling shares.
Since the San Francisco-based company went public, Brian Armstrong, Fred Ehrsam, President Emilie Choi, and Chief Product Officer Surojit Chatterjee have made a total of $1.2 billion in stock trades, according to a Wall Street Journal study of regulatory documents.
The filings show that Armstrong and his revocable trust made a total of $292 million by selling shares. Even so, he still has the most power in the company because he has 59.5 percent of the total voting power. Choi had costs of $9.7 million because he exercised options and sold stocks, which brought in $226 million. Chatterjee, on the other hand, had costs of $6 million because he exercised options and sold stocks, which brought in $110 million in profits.
During that time, Ehrsam made almost $500 million from buying and selling stocks. When the price of cryptocurrency hit a new low earlier this month, he bought about $75 million worth of shares for the company he co-founded that trades in cryptocurrency, Paradigm One LP.
Since all four companies sold stock through Coinbase’s direct listing, a lot of the company’s stock was bought and sold on the first day of trading. An initial public offering (IPO) is when a company sells a portion of its shares to the public for the first time. This helps the company get money. In contrast to going public, which often involves selling shares, a company must make sales like these in order for a direct listing to be successful.