Coinbase Stock Rebounds Despite Insider and Investor Selloff

Cathie Wood's ARK Reduces Coinbase Stock Holdings

On Monday, Cathie Wood-led Ark Invest restructured its portfolio, selling 3,769 COIN shares worth about $1.08 million, reducing its position in the company by 0.1%. Ark Invest's ARKF ETF sold 13,780 COIN shares worth $3.9 million on Dec. 20, amid a correction in the cryptocurrency market after a strong rally. However, Ark Invest still holds more than $100 million worth of COIN shares, accounting for 9.4% of the fund's portfolio.

Coinbase Insiders Sell COIN Shares

In parallel with Ark Invest's move, Coinbase's senior executives also sold shares. On January 2, Chief Technology Officer Paul Grewal sold 10,000 shares, earning more than $2.57 million, reducing his ownership to 12.59%, equivalent to 69,407 COIN shares worth about $17.82 million. Previously, in November 2024, Chief Financial Officer Alesia Haas also sold $62,066 worth of COIN shares after the company reported third-quarter revenue that fell short of expectations.

COIN Price Rebounds

Despite facing selling pressure from both institutional investors and insiders, COIN's stock price has recovered strongly. After falling 23% to $248.30 on December 31, 2024 due to general market conditions, COIN has risen to $287.76, reflecting a 6.36% increase since the last trading session.

With a market capitalization of $72.04 billion, Coinbase continues to attract institutional investors, with hedge funds holding 68.84% of the total shares.

Note

Coinbase is scheduled to release its Q4 2024 earnings report on February 15. The continued selling of shares by company executives could raise concerns about the possibility that they possess inside information, which could impact the company's future performance.