Coinbase Co-founder’s Fund Buys Dip, Spends $50M on COIN

Coinbase co-founder Ehrsam, through Paradigm, buys COIN stock for the first time in about a year, while CEO Armstrong has been selling


Coinbase co-founder Fred Ehrsam appears bullish on the US crypto exchange’s stock.

Ehrsam, also the co-founder and managing partner of crypto investment firm Paradigm, scooped up $48.8 million worth of Coinbase (COIN) shares for his funds earlier this week, according to an SEC filing.

The co-founder, via Paradigm, has acquired an additional 810,000 shares of Coinbase stock in several trades across Tuesday and Wednesday. He bought shares for between $59.30 and $63.20 each.

Ehrsam now owns a total of 5.6 million COIN shares held indirectly through three entities Paradigm One LP, The Frederick Ernest Ehrsam III Living Trust and Paradigm Fund LP, the filing shows.

Coinbase, one of the largest cryptocurrency exchanges, went public through a direct listing on the Nasdaq Exchange in Apr. 2021. Ehrsam raked in $270 million by offloading Coinbase stock in the months after Coinbase went public — cashing in nearly 856,000 shares for $315.67 on average.

Since its listing, COIN has plummeted some 85% from its opening bid more than two years ago, when it listed at $381 a share. It’s now at $60.35. In year-to-date terms, COIN is faring much better, up 81%.

It follows earlier purchases from Coinbase insider and Shopify CEO Tobias Lutke, who’d been spending hundreds of thousand of dollars on COIN stock per week on average throughout the start of the year.

Those buys have since ceased, per OpenInsider data compiled by Blockworks, which tracks SEC filings.

Ehrsam co-founded the company with CEO Brian Armstrong in 2012. Prior to founding Coinbase, Ehrsam was a foreign exchange trader at Goldman Sachs. 

Armstrong himself has been busy selling Coinbase stock fund his other ventures, with an eye to offload 2% of his company stake over one year.

Ehrsam left his day-to-day role at Coinbase in 2017 but continues to be involved with the company, serving as a company director. After leaving Coinbase, he co-founded Paradigm, a crypto-focused investment firm, with Matt Huang, a former partner at Sequoia Capital.

Ehrsam’s latest Paradigm buys come around one year after his funds and trusts first bought the Coinbase dip, spending $76.8 million to acquire a little more than 1.1 million COIN shares, scooping them up for $68.49 on average.

Overall, since Coinbase went public, the cost average of Ehrsam-related vehicles currently sits at $65.67, putting them about 9% down on COIN purchases to date.

Updated May. 13, 2023 at 6:05 am ET: Amended headline and added context to emphasize Ehrsam’s relationship with Paradigm

David Canellis contributed reporting.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

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

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



As part of the #Breakout2024 plans, Radix has introduced Token Trek


House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January


Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do


And, weeks of a potential crypto ETF decision are no stranger to chaos


The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month


More than half of Solana transactions fail