©Reuters
SAN FRANCISCO – Coinbase (NASDAQ:) insiders sold more than $120 million worth of company stock as shares of the cryptocurrency exchange saw a significant rise. Among notable sellers, Fred Ehrsam III executed a trade of 114,142 shares. Coinbase CEO Lawrence J Brock and Brian Armstrong also had substantial sales, with Brock selling $18.3 million and Armstrong selling $21.6 million worth of shares.
These sales come as Coinbase’s share price has seen a considerable rise since the start of the year, reaching $185.2. This price represents a strong recovery for the company, although it remains below the all-time high of $342.9 recorded in November 2021. The recent rise in Coinbase’s stock value reflects a period of bullish momentum for the company, which has navigated the volatile landscape of the cryptocurrency market.
Coinbase, founded in 2012, has become one of the most prominent platforms in the cryptocurrency space, offering a range of services including trading, custody and wallet for retail and institutional clients. The company went public in April 2021, marking a significant milestone for the crypto industry.
Insider selling is part of the normal course of business, with managers and early investors periodically liquidating a portion of their holdings. Trades are often planned in advance through automated trading plans known as 10b5-1s, which are set up to sell a predetermined number of shares at a given time to avoid felony charges insider.
Although insider sales can attract attention, it is not uncommon for executives to sell stocks for personal financial planning, diversification, or other reasons that have nothing to do with their vision of the company’s future performance. It should also be noted that insider transactions are subject to strict regulatory oversight and public disclosure requirements to ensure market transparency.
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