Coinbase Stock Adds 50% to Its Value Following the SEC’s Legal Action

Updated: 10 July 2023

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Over the course of the last several weeks, the crypto industry has been obsessing over multiple Bitcoin ETF filings that various companies approached the US SEC with.

However, just before the demand for ETFs skyrocketed, the US SEC filed a lawsuit against Coinbase and Binance.

Typically, when one of the US’ top regulators files a lawsuit against a company, its shareholders tend to dump shares, which causes their value to crash.

However, due to the overwhelming criticism that the SEC has received for cracking down on the crypto industry, this is not what happened with Coinbase.

On the contrary, the US-based crypto exchange has added over 50% to its stock value since the lawsuit was filed against the firm.

TradingView data shows Coinbase shares went from $52 on June 6 to $78.7 on July 7th. The total growth represents a 51% increase. Not only that, but the stock also increased by around 133% in the last six months. Meanwhile, its year-over-year growth is around 50%.

Coinbase shareholders sold over 88,000 shares since the lawsuit

It is worth noting that some of the exchange’s major stockholders did sell some of their shares. It is uncertain whether they sold them in order to profit from the increasing price or because they expected the price to crash after a momentary surge.

On July 6, several of Coinbase’s executives, including the CEO, Brian Armstrong, sold 88,058 shares. In exchange, the shareholders got around $6.9 million.

The official filing with the US SEC shows that the transactions included a 4,580 sale by Gokul Rajaram, one of Coinbase’s board members, as well as a 1,818 sale by Paul Grewal, the exchange’s Chief Legal Officer.

Jennifer Jones, the platform’s Chief Accounting Officer, also sold 7,335 shares. Jones later sold another 74,375 shares on June 29th, after the price had already grown considerably, netting around $5.2 million in exchange.

ARK Invest buys more Coinbase shares

Although some of the major shareholders started selling massive shares, there were also those who decided to wait and see what would happen. Cathie Wood’s investment company,

ARK Invest was among those who did not sell any of their holdings. In early June, the company purchased 400,000 shares belonging to the US-based crypto exchange.

Wood claimed that Coinbase would see an increase in share price once Bitcoin started another bull run, and ARK’s actions confirmed the strength of this belief.

A few weeks earlier, on June 19th, ARK Invest CEO reiterated her confidence that Bitcoin would be worth $1 million per coin someday.

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