• Fri. Jun 24th, 2022

Coinbase co-founder Fred Ehrsam buys $75 million worth of company stock

ByLinda W. Smith

May 22, 2022

Coinbase co-founder Fred Ehrsam buys $75 million worth of company stock amid major bear market decline. Coinbase’s stock price is currently $66, 80% below its all-time high. It therefore makes perfect sense to buy back shares if the co-founders believe in the future of the company. Here is a critical thought though, we can mostly expect Coinbase to pump in the next bull run; in this case, investing directly in Bitcoin could likely provide an investor with better returns.

The $75 million investment in Coinbase shares

Fred purchased 706,000 shares at nearly $70 each through his venture capital firm. This first purchase was worth approximately $50 million. The next one was worth $25 million at an average price of $65 and earned him another 385,000 shares. So, he bought over a million shares of Coinbase. This brings the total number of Coinbase shares held by Paradigm to 3.6 million shares. On the other hand, Fred owns about 1.1 million shares.

The future of Coinbase

The exchange suffered a loss of $430 million in the first quarter of 2022. However, that did not shake its CEO’s confidence in the business. In fact, Brian Armstrong said he was extremely optimistic even after this loss. Brian further added that so many new clients are joining that they have to keep everyone on deck even to make things work.

The CEO of Coinbase also believes that this type of slowdown pushes them to innovate, which benefits them in the next cycle. This is the first time the company has faced losses in a quarter, but given that the crypto markets are not yet mature enough and are experiencing bursts of bear runs and bull runs, it is inevitable. .

The exchange was developing its own NFT market, which was introduced a few months ago. They intend to become a market leader in the industry and are well on their way. Brian did not provide stats but said there are several opportunities and the NFT field is vast. However, it does not correspond to the volume visible on the platform. As of launch date, there were only 150 transactions totaling $75,000.

Whether the Coinbase stock price will recover in the coming years is hard to say. Although I am optimistic too. What do you think of Coinbase co-founder Fred Ehrsam buying $75 million worth of shares in the company? And do you think buying Bitcoin would be better? Let us know in the comments below. Also, if you found our content informative, like it and share it with your friends.

Read also : Michael Saylor Sticks To His $1 Million Bitcoin Price Target Despite Market Volatility.

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