The CEOs of publicly traded crypto firms, MicroStrategy and Coinbase, have collectively sold nearly $850 million worth of shares in the last nine months. MicroStrategy’s CEO, Michael Saylor, sold $362 million of shares since the beginning of 2024, while Coinbase’s cofounders, Brian Armstrong and Fred Ehrsam, sold $216 million and $270 million of shares respectively between November and July. These sales have coincided with a surge in the price of cryptocurrencies, with the total value of all outstanding cryptocurrencies currently standing at $2.6 trillion, up from $1.1 trillion a year ago.
Saylor sold 390,000 shares in the first four months of 2024, and still retains a 11% stake in MicroStrategy. Meanwhile, Armstrong remains the largest individual shareholder in Coinbase with a 15% stake and has sold less than 4% of his shares since November. Ehrsam, who holds a 4% stake in Coinbase, has been selling shares through automated trading plans. Both companies have seen significant growth in their share prices, with MicroStrategy’s shares doubling since the beginning of the year and Coinbase’s shares increasing by over 50%.
MicroStrategy’s quarterly revenues were slightly down compared to last year, but the company now owns 214,278 bitcoins worth about $15 billion, making it one of the largest single bitcoin holders. Coinbase’s revenues in the first quarter of 2024 were more than double those in the first quarter of 2023. The market rebound has led to a boost in the fortunes of the founders, with Armstrong estimated to be worth $10.6 billion, Ehrsam valued at $3 billion, and Saylor’s wealth estimated at $4.9 billion, derived from his stake in MicroStrategy, bitcoins, and proceeds from selling shares.
Armstrong and Ehrsam have been selling shares to fund scientific research and invest in startups. Saylor, on the other hand, has been a vocal advocate for Bitcoin, proclaiming it to be the future of capital and money. He believes it makes sense to have exposure to Bitcoin in one’s portfolio. Despite the recent sales of shares, the future outlook for these firms remains positive as the cryptocurrency market continues to expand. The founders’ actions indicate their confidence in the long-term growth potential of their respective companies in this rapidly evolving industry.
