Coinbase Posts Surprise Profit as Insiders Plan $2 Billion Share Sales: Why Now?

Coinbase (COIN) earned $718.7 million in the third quarter when Wall Street expected a loss. The same filing revealed that its CEO, a co-founder, and its president plan to sell up to 13.6 million shares over the next 14 months. Those plans cover about 6% of Coinbase’s 223.7 million Class A shares, worth roughly $2.2 billion at Thursday’s $160.59 close. For COIN shareholders, that is fresh stock supply arriving while the core business shrinks. Why the Profit Came from Crypto Coinbase Holds, Not from Trading Revenue fell 35% to $1.22 billion, according to the quarterly filing with the US Securities and Exchange Commission (SEC). Transaction revenue dropped 44% to $590 million as consumer spot trading volume fell 59%.

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