Brian Armstrong, a co-founder and the CEO of cryptocurrency platform Coinbase, sold his own company’s shares worth nearly $292 million in a single trading day, Reuters reported.
According to the filings made with the US Securities and Exchange Commission, Brian Armstrong sold 749,999 shares in three batches at prices ranging from $381 to $410.40 per share for the overall amount of $291.8 million. Besides, stakeholders sold about $5 billion in shares in total during Coinbase’ debut on the Nasdaq.
Such financial manoeuvers were carried out on the occasion of the direct listing of Coinbase. In case of a direct listing, available shares are bid among market participants. When it comes for an IPO (initial public offering), a company is free to issue more shares. The earnings from the shares sold are transferred to the company’s accounts.
Coinbase Global Inc, the largest American cryptocurrency exchange, went public on the Nasdaq on April 14. In the first 10 minutes of trading, Coinbase shares surged over 60%. Market quotes notably surpassed the bid price unveiled before the listing ($250 apiece). Shortly after the market opened, Coinbase shares jumped to $398 apiece. Later in the same trading day, the shares plunged by 30%. Eventually, Coinbase stock was valued at $86 billion in the late session of its debut on the Nasdaq.
