After its initial public offering last week, shares of Coinbase (NASDAQ:COIN) stock are falling on Monday due to some reports of insider selling from a group of company executives.
According to CoinTelegraph, “[i]nsider activity reports for Coinbase’s COIN stock indicate that multiple early investors and executives sold billions in equity shortly after COIN’s direct listing.” However, a Coinbase representative told the publication that the “sellers maintain strong ownership positions.”
So, who was selling their shares of COIN stock? And what does Wall Street have to say about the news? Let’s dive in and find out.
- According to insider documents, the executives that sold shares shortly after the IPO included co-founder and CEO Brian Armstrong and CFO Alesia Haas.
- In total, the sales by these two reached a total of more than $291 million.
- In turn, some reacted poorly to the news of the insider selling, as it seemed like large ownership stakes were being given up.
- However, as Coinbase told CoinTelegraph, the executives still own plenty of their majority shares.
- For example, in reality, Armstrong actually sold less than 2% of his COIN stock ownership.
- Additionally, Haas sold around 15% of her shares, while Coinbase CPO Surojit Chatterjee sold nearly 8% and COO Emilie Choi sold about 24%.
- Also, well-known hedge fund manager Cathie Wood added to her portion of ownership in three different ARK Invest funds.
- Now, she owns more than $350 million in COIN stock.
COIN stock was down 2.3% as of Monday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.