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After going public earlier this year, co-founders Brian Armstrong and Fred Ehrsam, President and Chief Operating Officer Emilie Choi, and Chief Product Officer Surojit Chatterjee made a combined $1.2 billion in stock sales.
According to a Coinbase spokeswoman, the four senior executives have considerable stakes in the exchange, reflecting “their commitment to long-term potential.”
Fortune of over $1 billion
According to a Wall Street Journal review of regulatory documents, this was approximately the time that the San Francisco-based company’s stock dropped by 80%.
The shares were reportedly sold for $189 to $422 by the four senior Coinbase executives. The initial price of Coinbase on its first day of trading was $381. The stock is now trading at roughly $75 at the time of writing.
Armstrong and his living trust sold shares for a total of $292 million, according to the reports.
The co-founder still has a majority share in the exchange, with a little more than 59 percent voting power.
During the same time period, Ehrsam made roughly $500 million in stock transactions. When the price fell to new lows earlier this month, the co-founder also acquired $75 million worth of shares on behalf of his investment business, Paradigm One LP.
Choi, on the other hand, sold shares for a total of $226 million and exercised options for $9.7 million.
Chatterjee, on the other hand, profited $110 million by exercising $6 million in options.
Declined company revenue
Coinbase has forged strategic partnerships with businesses ranging from the NBA to the ESL since going public.
The crypto market’s decline, on the other hand, cut the company’s first-quarter revenue in half compared to the previous quarter.
Simultaneously, the number of customer transactions each month fell drastically.
Regardless, Coinbase was just declared the first bitcoin business to appear on the Fortune 500 list.
After terrible first-quarter profits, Coinbase fell short of expectations, and conditions worsened during a crypto-wide bear market.
According to the Fortune report, Coinbase “thrived under the unusual conditions of COVID,” with over $7.8 billion in revenue in fiscal 2021.
It was ranked 437th among the biggest US firms by Fortune magazine.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
