According to a United States Securities and Exchange Commission (SEC) filing, it was discovered that Brian Armstrong, the Chief Executive Officer (CEO) of American cryptocurrency exchange Coinbase has sold up to 30,000 Class A shares that belong to the exchange. The filed document stated that the Class A shares were sold for $1.6 million on the 11th of November.
It is believed that this is the reason behind his decision to convert his Class B shares to Class A.
There are also speculations that he might make the same move in the coming months. Meanwhile, as the CEO of the American publicly traded company, Armstrong owns 16% of the firm. Sometimes in October, The 39-year-old CEO took to Twitter to announce plans of selling 2% of his digital assets holdings in Coinbase to fund scientific research.
Armstrong Sells 2% Coinbase Shares
At that time, he had his focus on two research firms, both of which he is an integral part of. The two firms of interest were NewLimit and Research Hub, which are focused on epigenetic reprogramming. Armstrong holds a passion that shows a belief in using science and technology to provide solutions to the challenges encountered in the cryptocurrency sphere.
“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,” Armstrong tweeted.
News about the sales of the Class A shares simultaneously follows the crash of the Bahamas crypto exchange FTX. Based on a tweet by a crypto enthusiast with the moniker, WhaleChart, Coinbase has about $15 million stuck in the sinking FTX exchange which recently filed for Chapter 11 bankruptcy.
Although, Coinbase says it does not work with Alameda Research or FTX, nor ever bought an FTX token (FTT). The American exchange claimed to only deposit funds in FTX, Before the fall of FTX, Armstrong predicted in August that the crypto winter which has been been on for a while will be over between the next 12-18 months.