Coinbase, the popular cryptocurrency exchange, despite facing a securities violation lawsuit from the U.S. Securities and Exchange Commission (SEC), has experienced a significant increase in its stock value.
Coinbase Stock Defies SEC Lawsuit with a Remarkable 50% Surge
Despite the legal challenges it faces, Coinbase’s stock value has soared, registering a remarkable 50% increase since the SEC filed a lawsuit against the company for allegedly offering unregistered securities.
TradingView data shows that Coinbase shares surged by 51%, climbing from approximately $52 on June 6 to $78.7 on July 7. Over the past six months, the stock has also grown by around 133%, with a year-to-year growth of approximately 50%.
Senior Coinbase Executives Sell Shares Amidst Significant Growth
Amidst the substantial growth in Coinbase shares, several senior executives within the company have chosen to sell portions of their holdings. On July 6, CEO Brian Armstrong and other top executives sold a combined total of 88,058 shares, amounting to approximately $6.9 million.
The transactions included a sale of 4,580 shares by Coinbase board member Gokul Rajaram, a sale of 1,818 shares by chief legal officer Paul Grewal, and a sale of 7,335 shares by chief accounting officer Jennifer Jones. Additionally, Jones had previously sold 74,375 shares on June 29, generating $5.2 million.
Major Investors Stand Firm
While the executives have been selling their shares, notable investors have remained steadfast in their commitment to the cryptocurrency exchange.
Cathie Wood’s investment firm, ARK Invest, purchased 400,000 additional Coinbase shares in early June and has not sold any of its holdings since. This aligns with Wood’s belief that as Bitcoin’s price rises, the value of Coinbase shares will also increase. In fact, during an interview on June 19, Wood reiterated her confidence that Bitcoin would eventually reach $1 million per coin.
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