Armstrong sells shares to fund scientific research, Coinbase's stock price surpasses $200 and can finally pay dividends!

According to records from the SEC, Coinbase CEO Brian Armstrong sold up to 250,000 shares of Coinbase stock at the end of February, with a total value of $49.8 million. Armstrong had previously stated his intention to sell 2% of the company's shares to fund enterprises focused on advancing scientific research and extending human life expectancy. With Coinbase's stock price once again surpassing the $200 mark, Armstrong will no longer be limited to just receiving his base salary and can now start collecting substantial bonuses this year.

CEO Armstrong's Equity Compensation Plan

In 2020, Coinbase established a performance award for CEO Brian Armstrong, which includes 10-year stock options to purchase 9,293,911 shares of Class A common stock, equivalent to 3.8% of the issued and outstanding shares. The exercise price of the award is $23.46 per share, the fair market value at the time the plan was established.

According to previous reports, Armstrong would only be eligible for the performance award if Coinbase's stock price reaches $200 or more, with the number of shares he receives increasing as the stock price rises. Once the targets are met, the shares will vest over 48 months, meaning it would take a total of four years to receive all the shares.

If the targets are not met, Armstrong would only receive a base salary of $1 million along with reimbursement for personal security and legal expenses. His total compensation in 2022 is even lower than that of the CFO, COO, and CPO.

Armstrong Sells Stock to Fund Scientific Research

In October 2022, Armstrong announced on Twitter that he plans to sell 2% of his company's shares to fund enterprises focused on advancing scientific research and extending the average human lifespan. He is passionate about accelerating science and technology to address some of the world's biggest challenges, and the proceeds from the sale will support companies like NewLimit and ResearchHub.

NewLimit, a company co-founded by Armstrong and three others, aims to reprogram human cells to extend lifespan. DeSci, a decentralized science company co-founded by Armstrong and Patrick Joyce, operates ResearchHub, a primary community platform for researcher open-source collaboration. The company is supported by BoostVC and Sora Ventures and aims to reform the academic and scientific publishing incentive system by combining open-source principles and cryptocurrency crowdfunding.

I'm passionate about accelerating science and tech to help solve some of the biggest challenges in the world. To further this, I'm planning to sell about 2% of my Coinbase holdings over the next year to fund scientific research and companies like @newlimit + @researchhub

— Brian Armstrong 🛡️ (@brian_armstrong) October 15, 2022

The stock sale is scheduled to be executed on August 16, 2023, in line with the sales plan. In the preceding three months, Armstrong had already sold 184,650 shares of Coinbase stock, valued at nearly $25 million.

Currently, Coinbase has approximately 242 million shares outstanding, with 2% equating to 4.84 million shares. It appears Armstrong has already sold the necessary shares, and he has indicated that he will continue to serve as CEO of Coinbase.

According to the latest data from Forbes, Armstrong's current net worth is $8.8 billion, ranking him 281st on the billionaires list.

Coinbase Buys and Sells Crypto for Revenue Recognition

According to Coinbase's recent financial report, fueled by optimistic sentiment in the crypto market, Coinbase finally achieved profitability for the full year 2023. However, hidden in the annual report is Coinbase's quiet buying and selling of cryptocurrencies like Bitcoin in 2023, with gains recognized from sales in the fourth quarter.

The disclosed net gain from impairment of crypto assets in the fourth quarter was $51.76 million. Coinbase stated that this was due to "selling a portion of crypto assets as part of normal operations, resulting in gains," without disclosing the types and amounts of coins.

It is estimated that Coinbase holds approximately 9,351 Bitcoins, 128,047 Ethereum, and 706,709 SOL coins for investment and operational purposes. Following the implementation of FASB accounting standards, these holdings are expected to bring in hundreds of millions of dollars in profits.

It turns out Coinbase also buys crypto! Next quarter's profits set to soar with new FASB standards

COIN Returns to $200, Armstrong Eligible for High Stock Options

On April 13, 2021, Coinbase made a grand debut on the NASDAQ exchange, becoming the first publicly traded cryptocurrency company in the United States. The stock price once reached a high of $429, but since the crypto industry entered a bear market following the collapse of LUNA in 2022, the price has steadily declined, even dropping below $30 at its lowest.

Now, with the crypto market heating up again, increased trading volume at Coinbase and impressive financial reports have pushed the stock price back above $200. It seems that this year, Armstrong will finally bid farewell to receiving only a base salary and can start receiving high stock option rewards at the exercise price of $23.46 per share, the fair market value at the time the plan was established!