Coinbase, the US-based cryptocurrency exchange, made a debut on Nasdaq last week. Brian Armstrong, the CEO of the digital exchange, sold nearly $292 million worth of COIN shares on opening day.
According to the latest filing made with the US Securities and Exchange Commission (SEC), Coinbase CEO sold a total of 749,999 COIN shares in three different batches at prices ranging from $381 to $410. The stock of Coinbase made a debut on 14 April when COIN share received a reference price of $250 from Nasdaq.
The closing price of COIN stock on Friday was $342. The shares of the digital exchange touched an all-time high of approximately $420 during the opening day. The price saw a correction on the same day but stabilized above $300.
According to a recent report published by Bloomberg, Cathie Wood’s Ark Investment Management purchased nearly $246 million worth of COIN stock on Wednesday. The company expanded its COIN stock portfolio with the purchase of 341,186 Coinbase shares worth approximately $110 million on Thursday.
According to a report published by Coindesk, Coinbase Director and venture capitalist, Frederick Wilson sold 4.70 million shares for proceeds of approximately $1.82 billion. Venture capitalist Marc Andreessen and Union Square Partners also sold some part of their holdings.
Commenting on the latest developments and supply of Coinbase stock, Paul Grewal, Chief Legal Officer at Coinbase, said: “To provide enough supply and invite new investors in, a company must sell a minimum of the total cap table for a successful listing. The largest shareholders are typically the investors and executives, so this means that they will often have the largest sales on listing day. For Coinbase, this means that we saw our investors and certain executives create this pool of liquidity. Without their sales, CB could not have successfully created a supply of shares that could enable new investors to come in, which is basically the point of a DL.”
Coinbase reported strong financial numbers in Q1 of 2021 as the cryptocurrency exchange saw $335 billion in trading volume during the first three months of 2021.