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

Coinbase reported $718.7 million in third-quarter net income when Wall Street expected a loss, and disclosed that CEO Brian Armstrong, co-founder Fred Ehrsam and President Emilie Choi plan to sell up to 13.6 million shares over 14 months, about 6% of its 223.7 million Class A shares and roughly $2.2 billion at Thursday’s $160.59 close. Revenue fell 35% to $1.22 billion, transaction revenue dropped 44% to $590 million, and nearly all net income came from a $715 million gain on crypto holdings. The sales are under Rule 10b5-1 schedules, which Coinbase requires executives to use and which sell only above undisclosed price thresholds; Armstrong’s plan covers 8.17 million shares from November 16 through October 2027.