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Coinbase Co-Founder Fred Ehrsam Buys the Dip, Purchases $75M of Company Stock

·1 min read

Don't miss CoinDesk's Consensus 2022, the must-attend crypto & blockchain festival experience of the year in Austin, TX this June 9-12.

Over the past week, Fred Ehrsam purchased more than one million shares of Coinbase (COIN) worth roughly $75 million, stepping in as the crypto exchange's stock price plunged following the company’s weak earnings report.

According to a Form 4 filing with the U.S. Securities and Exchange Commission, Ehrsam – through Paradigm, the venture capital firm he co-founded – purchased more than 706,000 shares of Coinbase on May 13 at an average price of about $70 each, or nearly $50 million worth. He then followed that up on May 17 with the purchase of another 385,000 shares at an average price of roughly $65 each, or about $25 million worth.

Read more: Coinbase Pares Back Hiring Plans Amid Weak Earnings, Poor Market Condition

The purchases brought holdings of Coinbase by Paradigm to more than 3.6 million shares. Ehrsam also holds 1.1 million shares via a trust.

Last week’s purchases came with Coinbase shares tumbling more than 70% in 2022, and off more than 80% from the all-time high hit shortly after the company’s initial public offering 13 months ago. Ehrsam and related entities previously had been consistent sellers of Coinbase stock since that April 2021 IPO, unloading several hundred million dollars' worth of shares.

Ehrsam was previously a co-founder of Coinbase, and is currently on the company’s board. He and Matt Huang are co-founders and managing partners of Paradigm.