Coinbase Co-Founder Fred Ehrsam Buys the Dip, Purchases $75M of Company Stock

The purchases were made via Paradigm, a venture capital firm Ehrsam co-founded.

AccessTimeIconMay 20, 2022 at 4:22 p.m. UTC
Updated May 20, 2022 at 9:04 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Over the past week, Fred Ehrsam purchased more than one million shares of Coinbase (COIN) worth roughly $75 million, stepping in as the crypto exchange's stock price plunged following the company’s weak earnings report.

According to a Form 4 filing with the U.S. Securities and Exchange Commission, Ehrsam – through Paradigm, the venture capital firm he co-founded – purchased more than 706,000 shares of Coinbase on May 13 at an average price of about $70 each, or nearly $50 million worth. He then followed that up on May 17 with the purchase of another 385,000 shares at an average price of roughly $65 each, or about $25 million worth.

The purchases brought holdings of Coinbase by Paradigm to more than 3.6 million shares. Ehrsam also holds 1.1 million shares via a trust.

Last week’s purchases came with Coinbase shares tumbling more than 70% in 2022, and off more than 80% from the all-time high hit shortly after the company’s initial public offering 13 months ago. Ehrsam and related entities previously had been consistent sellers of Coinbase stock since that April 2021 IPO, unloading several hundred million dollars' worth of shares.

Ehrsam was previously a co-founder of Coinbase, and is currently on the company’s board. He and Matt Huang are co-founders and managing partners of Paradigm.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Trending

1
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
2
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
3
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
4
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown