The United States Securities and Exchange Commission (SEC) launched a lawsuit against Coinbase in June, following a lengthy dispute. The announcement of the lawsuit led to a sudden 20% drop in shares. This reflected the uncertainty in the market and the concerns of potential investors.
Despite the pressures from the SEC and the negative atmosphere, Coinbase shares recently demonstrated a significant recovery. On June 6th, the share price was around $52, which increased to $78.7 on July 7th, indicating a 51% increase. When evaluated on an annual basis, shares gained approximately 50% value year-over-year.
Share Sales from Senior Executives
According to Cointelegraph, as this growth trend continues, senior executives at Coinbase, including CEO Brian Armstrong, have sold their shares. On July 6th, Armstrong and other executives sold a total of 88,058 shares, worth approximately $6.9 million.
Some investors interpret this situation as an indication that the share prices have already reached their peak and that the potential for further growth is limited.
In contrast to these sales, some large investors prefer to keep their shares. For example, ARK Invest, led by Cathie Wood, has made a significant investment in Coinbase shares since the beginning of June and has not yet executed a sale. Wood believes that as the value of Bitcoin increases, the value of Coinbase’s shares will also increase. This strategy can be seen as a high-risk but potentially high-return investment.