Coinbase CEO to Sell Part of Exchange Shares for Biotech Startups

Brian Armstrong, the CEO of Coinbase, one of the leading cryptocurrency exchanges, has announced his intention to sell 5% of his shares in the company. The proceeds from this sale will be directed towards investments in biotechnology startups, showcasing Armstrong's diversified investment strategy beyond the realm of cryptocurrencies.

Between November 2022 and November 2023, Armstrong has previously sold off shares in Coinbase. During this period, he divested 790,000 COIN shares, yielding over $53 million in revenue. The average share price during this time, according to reports from the U.S. Securities and Exchange Commission (SEC), was $67.37. However, with the current average share price of Coinbase standing at $164, Armstrong potentially missed out on an estimated $76 million.

Armstrong's investment endeavors extend beyond the realm of cryptocurrency. During his previous share sales, he directed funds towards biotech startups like ResearchHub and NewLimit. ResearchHub operates as an open-source academic publication platform funded by cryptocurrency, while NewLimit, a project where Armstrong serves as a co-founder, focuses on extending human life through cellular research. Together, these startups have attracted $5 million and $40 million in investments, respectively.

Coinbase's recent quarterly report unveils a trading plan that permits Armstrong to sell 5% of his shares, amounting to 1.8 million shares valued at $295 million. Additionally, other executives such as Coinbase's Director Fred Ehrsam and Chief Operating Officer, along with the Head of Legal, may collectively sell 3 million COIN shares, totaling $489 million.