Coinbase CEO To Sell 2% of His COIN To ‘Fund Scientific Research’

Analysts give the exchange a moderate buy rating with a price target of $149 per share, more than double its current value

article-image

Coinbase CEO Brian Armstrong | blockworks exclusive art by axel rangel

share

key takeaways

  • Coinbase went public via direct listing in April 2021 — since then, its shares have tumbled close to 80%
  • “For the avoidance of doubt, I intend to be CEO of Coinbase for a very long time,” Armstrong tweeted

Coinbase CEO Brian Armstrong intends to sell 2% of his stake in the cryptocurrency exchange to “fund scientific research and companies,” he announced on Twitter

Per Coinbase’s 2022 proxy statement released in April, Armstrong owns 16% of the exchange and controls 59.5% of its voting shares. 

“It is not unusual for executives or founding members of a public company to cash out shares, thus Brian Armstrong’s 2% sale is not necessarily a foreboding indicator for Coinbase’s future share price,” said Clara Medalie, head of research at Kaiko.  

Armstrong mentioned two specific companies he would like to fund: NewLimit, a California-based biotech startup working on expanding the human lifespan, and Research Hub, a public platform for research publication. The CEO did not specify whether “funding” these companies would be a venture capital investment. 

“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,” Armstrong tweeted. “I’m fully dedicated to growing our business and advancing our mission, but I am also excited to contribute in a different way.” 

Coinbase went public via direct listing in April 2021 — since then, its shares have tumbled close to 80%. COIN mirrored the Nasdaq and edged higher Monday, the first trading session since Armstrong’s announcement, before falling back into the red Tuesday. 

“Bearish cryptocurrency markets have caused a general downturn in trading activity, which directly impacts revenues earned from trading fees for exchanges,” Medalie said. “Armstrong’s announcement comes amid a prolonged downturn in crypto prices and trading activity, thus the sale could be correlated to Coinbase’s future share price, should the bear market continue, while not directly impacting it.”

Analysts surveyed by Market Beat gave the exchange a moderate buy rating with a price target of $149 per share, more than double its value at time of publication. Coinbase is set to report its earnings for the third quarter of 2022 next month.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit