In spite of the stock’s recent increase, senior Coinbase personnel, including CEO Brian Armstrong, have started selling their shares.
The stock of cryptocurrency exchange Coinbase has been rising despite being the target of a securities violation case in the US. Since the U.S. Securities and Exchange Commission (SEC) sued Coinbase for allegedly providing unregistered securities, the value of the company’s stock has increased by more than 50%.
According to TradingView data, the price of Coinbase shares increased by 51% from roughly $52 on June 6 to $78.7 on July 7. The stock has grown by roughly 133% over the last six months, with a gain of about 50% from year to year.
Some prominent Coinbase stockholders have started selling their shares despite the considerable increase in stock value. Senior Coinbase executives sold a total of 88,058 shares valued around $6.9 million on July 6. This included CEO Brian Armstrong.
Related: SEC Claims Coinbase Knew It Was Violating Securities Laws
According to SEC filings, the transactions involved the sales of 7,335 shares by chief accounting officer Jennifer Jones, 1,818 shares by chief legal officer Paul Grewal, and 4,580 shares by Coinbase board member Gokul Rajaram. On June 29, Jones had also sold 74,375 Coinbase shares for a total net gain of $5.2 million.
Some significant investors have chosen to cling onto their investments, while Coinbase executives have been selling their shares on a regular basis. According to the company’s portfolio updates, Cathie Wood-led investment firm ARK Invest added 400,000 more shares of Coinbase stock in early June and hasn’t liquidated any of its holdings. Wood predicts that increases in the price of Bitcoin will be accompanied by increases in the stock price of Coinbase.
Cathie Wood, CEO of ARK Invest, has frequently stated that she anticipates Bitcoin to eventually reach a price of $1 million per coin, which reflects her faith in Coinbase’s future potential.
The fact that Coinbase stock has continued to grow despite the SEC lawsuit shows that market participants are taking into account more than just the company’s current legal problems. Investors’ choices may be influenced by elements including general market sentiment, the expansion of the cryptocurrency business, and the possible future value of Bitcoin.
Related: ARK Invest Buys $21M of Coinbase Shares After SEC Lawsuit
Insights into the growing dynamics of the cryptocurrency industry and the ongoing evolution of the regulatory framework surrounding digital assets are provided by the continued performance of Coinbase’s stock and the activities of significant shareholders.