Coinbase Under Scrutiny: CEO Armstrong Sells $550M in Stock Amid 60% Price Crash

TLDR:

• Armstrong sold 1.5M shares worth $550M+ between April 2025 and January 2026 in 88 transactions 
• Coinbase stock crashed 60% from 2025 peak, trading 48% below 200-day moving average at $153 
• Q4 2025 earnings showed $667M net loss with 20% revenue decline and shrinking trading volumes 
• Centralized exchange trust eroded after FTX’s $8B misuse and Binance’s $4B regulatory penalty

Coinbase faces renewed scrutiny as CEO Brian Armstrong executed stock sales exceeding $550 million while users report withdrawal difficulties.

The transactions occurred during a period of extreme fear in cryptocurrency markets. The company’s stock price has fallen 60% from its 2025 peak.

Armstrong’s sales between April 2025 and January 2026 totaled over 1.5 million shares across 88 separate transactions, averaging roughly $61 million monthly.

Executive Stock Sales Raise Questions During Price Decline

Armstrong completed his largest sale near $355 per share before the stock declined to approximately $153. The shares now trade nearly 48% below the 200-day moving average.

According to crypto analysis platform Our Crypto Talk, the sales followed a Rule 10b5-1 trading plan. This pre-scheduled arrangement allows executives to diversify holdings without accusations of insider trading.

The CEO maintains ownership of roughly 14% of Coinbase despite the significant share reduction. His remaining stake represents billions of dollars tied to company performance.

Other tech founders, including Mark Zuckerberg and Jeff Bezos, have employed similar diversification strategies. However, the timing drew attention from retail investors watching the stock decline.

Armstrong’s consistent selling pattern coincided with falling share prices throughout the period. Retail investors typically purchase shares during price dips while executives reduce exposure.

This contrast between insider activity and retail behavior creates tension in market narratives. The steady monthly sales continued regardless of market conditions or company performance.

Market observers note the difference between planned diversification and opportunistic selling. Armstrong’s adherence to a predetermined schedule suggests routine portfolio management.

Yet the optics remain challenging when executive sales occur during sustained price deterioration. Retail investors monitor such transactions for signals about company prospects.

Weak Earnings Compound Market Concerns

Coinbase reported a $667 million net loss in Q4 2025 earnings. Revenue declined 20% compared to the previous quarter.

Trading volumes contracted as market participation decreased. Growth in stablecoin activity also slowed during the reporting period.

JPMorgan analysts responded by cutting their price target by 27%. The stock dropped further following these disclosures and analyst actions.

Despite holding $11.3 billion in cash reserves, investor confidence remained shaken. The company repurchased $1.7 billion worth of shares and pursued expansion through acquisitions.

The core business model depends heavily on trading volume generation. When market fear dominates sentiment, trading activity typically evaporates.

Crypto markets operate as sentiment-driven mechanisms where confidence shifts create rapid changes. Volume-dependent revenue models struggle during extended periods of market pessimism.

Centralized exchange trust has eroded following high-profile failures and regulatory actions. Sam Bankman-Fried misused $8 billion in customer funds at FTX.

Binance paid $4 billion in penalties to settle regulatory violations. These events taught retail investors costly lessons about exchange risk and custodial arrangements.

Our Crypto Talk emphasized that Coinbase differs from FTX through public listing and regulatory oversight. The exchange maintains substantial reserves and undergoes regular audits.

Nevertheless, every insider sale now attracts heightened scrutiny from the investment community. Withdrawal delays trigger immediate concern among users familiar with past exchange collapses.

The current situation may represent standard executive planning during a challenging market cycle. Alternatively, it serves as a reminder about the nature of centralized exchanges as businesses.

Balance sheet strength, insider activity, and operational stability during volatility merit ongoing monitoring. Trust in crypto markets tends to erode gradually before breaking completely.

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