In recent months, billionaires with stakes in publicly traded crypto firms such as Coinbase Global and MicroStrategy Inc. have collectively sold nearly $850 million worth of shares. MicroStrategy founder and CEO Michael Saylor has sold $362 million of MicroStrategy shares since the beginning of 2024, while Coinbase cofounders Brian Armstrong and Fred Ehrsam have sold $216 million and $270 million of Coinbase shares, respectively. These sales have coincided with a surge in cryptocurrency prices, with Bitcoin trading at around $70,000, more than double its value from a year ago.
Saylor, who founded MicroStrategy in the 1990s, sold 390,000 shares in the first four months of 2024. He still retains a significant stake in the company, owning 2 million shares, representing an 11% stake. Meanwhile, Armstrong, who is still the largest individual shareholder in Coinbase with a 15% stake, and Ehrsam, who holds a 4% stake, have also been selling their stock through automated trading plans. Despite the sales, both MicroStrategy and Coinbase have seen significant increases in their share prices, with MicroStrategy shares doubling in value since the beginning of the year and Coinbase shares up more than 50% since January.
MicroStrategy’s quarterly revenues of $115 million were slightly down from the previous year, but the company now owns over 214,000 bitcoins, valued at around $15 billion. This makes MicroStrategy one of the largest single bitcoin holders in the market. On the other hand, Coinbase reported revenues of $1.64 billion in the first quarter of 2024, more than double what they were in the same period in 2023. The market rebound has resulted in a significant increase in the fortunes of the founders, with Armstrong estimated to be worth $10.6 billion and Ehrsam estimated to be worth $3 billion.
While Armstrong and Ehrsam have not commented on their share sales, Saylor has expressed his belief in the future of Bitcoin, stating that “Bitcoin is the future of capital, the future of money.” Saylor made this statement at the Bitcoin Conference in Nashville, where he also emphasized the importance of investing in Bitcoin. Despite Saylor’s optimism, it is worth noting that the cryptocurrency market is highly volatile, with prices subject to rapid fluctuations based on various factors such as market demand, regulatory developments, and investor sentiment.
Overall, the recent share sales by the billionaires tied to Coinbase and MicroStrategy highlight the growing interest and investment in the cryptocurrency space. As the value of cryptocurrencies continues to rise and more companies adopt Bitcoin and other digital assets as part of their investment strategy, it will be interesting to see how these billionaires navigate the evolving market landscape and capitalize on the potential opportunities that come with it.
