As per a recent report, Coinbase Global executives and directors aim to offload shares totaling nearly $900 million. The company’s top brass, including CEO Brian Armstrong, have implemented trading plans to offload up to five million shares, representing a value of $909 million based on the company’s current share price.

On October 30, the company outlined its trading plan under Rule 10b5-1 provisions in a regulatory filing to the US Securities and Exchange Commission (SEC), thus allowing the executives to establish pre-arranged trading schedules.

For context, in publicly traded companies like Coinbase, insiders – including executives, directors, officers, and major shareholders – must adhere to specific trading rules when conducting insider sales (sales of company shares).

This is because they have access to confidential, non-public information about the company. To mitigate concerns surrounding insider sales, these individuals must disclose their transactions and comply with regulations, such as filing forms with the Securities and Exchange Commission (SEC) or following Rule 10b5-1 plans.

As a result, Coinbase has filed the necessary forms with the SEC to disclose its insiders’ trading plans, ensuring transparency and compliance with regulatory requirements.

Coinbase Executive to Sell Shares

Apart from the company’s CEO, Armstrong, several key executives are involved in the share sale. Armstrong intends to sell 3.75 million Class A COIN shares, convertible from Class B shares held by his trust. The plan starts on November 18 and will run until November 14, 2025.

Coinbase Chief Financial Officer Alesia Haas plans to sell up to 153,896 Class A shares from January 2 to December 31, 2025. Meanwhile, the company’s co-founder Frederick Ehrsam III plans to sell up to 866,122 Class A shares starting on November 25.

Additionally, Chief Legal Officer Paul Grewal will sell up to 151,005 Class A shares beginning December 2, and finally, one of Coinbase’s directors, Fred Wilson, plans to sell up to 50,000 Class A shares starting November 7.

In a bid to address potential investor unease surrounding insider stock sales, Coinbase pointed to remarks from CFO Alesia Haas on its Q4 earnings call, held on February 15. He stated, “[A]ll of our insiders…have shared long-term conviction in Coinbase.” He continued, “It’s important to note that these sales account for a small portion of insiders’ total holdings in Coinbase.”

In a recent report, Coinbase faced SEC scrutiny over apparent dissatisfaction with some securities laws.