Coinbase CEO Brian Armstrong sold approximately $292 million in shares on the first day of trading on cryptocurrency exchange Nasdaq. According to the regulatory filing, Armstrong sold 749,999 shares in the three batches, with prices ranging from $381 to $410.40 per share. The total proceedings calculate up to $291.8 million.
About Coinbase Cryptocurrency Exchange
Founded in 2012, Coinbase is said to be the world’s largest cryptocurrency exchange as far as converting cryptocurrency to regular currency is concerned. The company started trading on the Nasdaq on 14 April at a valuation of almost $100 billion.
The Blockchain and crypto website Coindesk reported that the Coinbase stakeholders and investors sold around $5 billion in shares in total during the first day of trading. In another filing, it was mentioned that venture capitalists and the director of Coinbase Frederick Wilson sold 4.70 million shares for proceeds of $1.82 billion. However, the number of Coinbase Wilson still holds is not clear yet. Wilson is listed on the SEC filing as a holder of at least 10% of the shares of Coinbase, which has a market cap of $63.6 billion.
Difference between Direct Listing VS Initial Public Offering
The Shares of Coinbase are Supposed to Come From the Direct Listing. With the information of whom the share was sold exactly and for how much is added. The difference between IPO and Directly listing is just that, In the case of the initial public offering, the new shares issued by the company proceeds going to the treasury while in a direct listing the public is only offered EXISTING shares that are held by insiders. Even though a company gains no proceeds from a direct listing, it does benefit in other ways.
Noelle Acheson, CoinDesk’s director of research, put it so well, “A direct listing is a liquidity event; an IPO is a capital-raising event.”