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Brian Armstrong Sold Coinbase Shares Worth Over $1.6 Million

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As the ongoing FTX drama dashed hopes of an end to the crypto winter, Coinbase was one of the few companies to publicly state that they had no exposure to the fallout. Although Brian Armstrong, the exchange’s CEO, assured users that Coinbase would not suffer a similar fate, things do not look promising for the platform.

According to Coinbase CFO Alesia Haas, the company recently laid off another 60 employees as a direct result of the current situation, following an 18% reduction in the size of its workforce earlier this year. She also hinted that this may not be the final round of layoffs.

“If we see that there is going to be further depressed revenue, and if we believe this is going to impact beyond the scenarios we have already planned for, we will have to take further cost-saving action.”

The layoffs at Coinbase were not an isolated incident; many crypto platforms have done the same in order to cut spending and keep operations running smoothly despite adverse market conditions.

The CEO’s sale of assets may indicate that Coinbase’s financial situation is deteriorating, especially given the price at which the assets were sold.

Brian Armstrong recently sold 29,732 shares for a total of $1,625,151.12. The average price per share of Coinbase stock (COIN) across 13 transactions was $54.66. The lowest price was achieved during the sale of a smaller batch of 300 shares, each worth $46.70. Although the prices listed above are not insignificant, they pale in comparison to the value of Coinbase stock earlier this year.

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At its peak in 2022, one Coinbase share was worth $348.49, which was more than six times the current average price during the selloff. If the transaction had taken place at the peak of COIN’s value, it would have been worth more than $10.36 million. Even if we only look at more recent data, the situation does not improve significantly.

COIN’s 50-day moving average price is $66.50, implying that the transaction occurred at a price that is approximately 20% lower than the stock’s two-month median price.

Finally, the selloff could indicate that investor interest in Coinbase is growing, especially given how well they’ve weathered the crypto winter thus far. However, because the bear market appears to be here to stay for the time being, crypto platforms will have to maintain a tight ship in order to stay afloat.