Institutional investors are selling off Coinbase Global Inc. (COIN) stocks as insiders tied to America’s largest crypto exchange also reduce their stakes in the company.
Cathie Wood’s ARK Lowers its Coinbase Stock Holdings
On Monday, Cathie Wood’s Ark Invest restructured its portfolio, selling 3,769 shares of Coinbase (COIN) for $1.08 million, reducing its position by 0.1%.
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Additionally, ARKF ETF offloaded 13,780 shares worth $3.9 million on December 20, as the crypto market faced a setback following a strong bull rally.
Ark Invest, one of Coinbase’s earliest and biggest investors, still holds over $100 million worth of COIN shares, making up 9.4% of the fund’s portfolio.
Coinbase Insiders Selling COIN Stock
Coinbase’s stock sales by ARKF coincide with insiders liquidating their holdings. On January 2, Coinbase’s Chief Technology Officer, Paul Grewal, sold 10,000 shares, netting over $2.57 million. This reduced his stake by 12.59%, leaving Grewal with 69,407 Coinbase stocks worth about $17.82 million. Grewal has been gradually selling off his COIN holdings in recent months.
In November 2024, Alesia Haas, Coinbase Global’s Chief Financial Officer, sold $62,066 worth of her COIN shares following a revenue shortfall in the third quarter of 2024.
COIN Price Recovers
After a 23% drop to $248.30 by December 31, 2024, due to broader market conditions, COIN stock has rebounded to $287.76, reflecting a 6.36% increase as of the latest trading session.
With a market cap of $72.04 billion, Coinbase remains a major focus for institutional investors, with hedge funds owning 68.84% of the stock.
On the Flipside
- Coinbase has not yet released its Q4 2024 earnings report, which is expected on February 15.
- Frequent large stock sales by executives like Grewal may raise concerns about insider knowledge, potentially signaling uncertain future performance.
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