Coinbase CEO Brian Armstrong sold 23,075 COIN shares worth $4.92 million, significantly impacting the stock price.
Brian Armstrong, the CEO of Coinbase (COIN), has recently decreased his ownership of the cryptocurrency exchange. Armstrong disclosed the disposition of nearly $5 million in COIN shares on Thursday, July 12. Additionally, the sale may have exacerbated the recent decline in the COIN stock.
Brian Armstrong sold 23,075 shares of Coinbase stock, valued at approximately $4.92 million, on Thursday, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
This transfer has significantly impacted the company’s stock price, as COIN shares have experienced a substantial decline in the aftermath of the transaction. COIN stock closed at $214.63 on the day of the transaction, representing a 2.25% decline from its previous close.
Armstrong’s stock sale news appeared to hurt the market, contributing to its decline. Nevertheless, the COIN stock began to exhibit symptoms of recovery on the following day, Friday, July 12. In pre-market trading, the stock experienced a modest increase of 0.85%, reaching $216.46.
Armstrong continues to maintain a considerable number of shares in Coinbase, despite these sales. Nevertheless, most recently, the stake in COIN has been diminished due to the ongoing offloading.
Armstrong has sold shares in Coinbase on multiple occasions in recent months. According to reports, he offloaded COIN stock valued at $5.3 million in early June.
Armstrong also sold $5.9 million of COIN shares in April of this year. The stock price of Coinbase, which was publicly traded in April 2021, has undergone substantial fluctuations. Furthermore, the stock price of Coinbase has been significantly affected by insider trading.
On August 1, 2024, it is anticipated that Coinbase will disclose its earnings report. If Coinbase officially verifies the earnings release date, this date may be altered, despite being based on past reporting trends. Analysts on Wall Street are anticipating substantial fluctuations in the organization’s financial performance as this date approaches.
Seven analysts have recently provided forecasts for Coinbase’s upcoming quarter, with an average earnings per share (EPS) of $1.13, according to Zacks Investment Research.
This projection indicates a remarkable 369.05% increase from the EPS of -$0.42 for the same quarter in the previous year. Nevertheless, the forecast anticipates a considerable quarter-over-quarter decline of 31%, although the EPS was $1.65 in the first quarter of fiscal year 2024, despite this substantial year-over-year improvement.
The anticipated decline is primarily attributable to the cryptocurrency market’s diminished trading volumes, significantly impacted by the decline in Bitcoin (BTC) prices.
The German government’s selloff and repayments from Mt. Gox were the primary factors contributing to the significant decline in Bitcoin’s price, which plummeted from a peak of $72,000 in April to approximately $53,000 in recent times. Furthermore, Bitcoin is currently experiencing a downturn at $57,000.
