Coinbase co-founder sold nearly $9 million worth of stock

By Tomi Kilgore

Co-founder and board member Fred Ehrsam sold more than 80,000 shares as part of a previously adopted trading plan

Coinbase Global Inc. co-Founder and Director Fred Ehrsam disclosed that the sold more than 80,000 shares last week, or about 7% of the shares he indirectly owns through a living trust.

That didn't hurt the cryptocurrency exchange's stock (COIN) at all, as it ran up 5.4% toward an 18-month high in afternoon trading Tuesday.

The stock has rocketed 63.6% so far in November, which would be its second-best monthly performance, behind the record 65.2% rally in January 2023. Meanwhile, bitcoin (BTCUSD) has risen up 10.6% this month and the S&P 500 index SPX has gained 8.5%.

In a Form 4 filing with the U.S. Securities and Exchange Commission late Monday, Ehrsam said he sold 81,530 shares in the open market on Nov. 22, as part of a Rule 10b5-1 trading plan that was adopted on Aug. 21.

The shares sold represented 7.2% of the Federal Ernest Ehrsam III Living Trust's holdings. They were sold at a weighted-average price of $106.94, which valued the shares sold at $8.72 million. The trust now owns 1.05 million shares after the sale.

The stock was recently trading 18% above where Ehrsam sold them.

A Form 144 filed on Nov. 22 indicated the shares were acquired by Ehrsam on Dec. 30, 2019, or about 16 months before Coinbase went public.

Ehrsam also indirectly owns 2.58 million Coinbase shares through the Paradigm Fund LP and another 1.93 million shares through Paradigm One LP.

-Tomi Kilgore

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11-28-23 1345ET

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