Who Bought Coinbase?

Who Bought Coinbase?

If you've been wondering who bought Coinbase, you're not alone. Other investors have jumped on the bandwagon too. We've looked at Fred Ehrsam's ARK Innovation and Brian Armstrong's Jupiter Asset Management. But do any of these investors have a direct stake in the company? Let's take a closer look. Listed below are their names and companies. What do they have in common?

Fred Ehrsam

The IPO of Coinbase on Wednesday valued the company at $99.6 billion. Founded in 2012, the company had a rocky start as the value of bitcoin was only $6. But over two years, it has become one of the biggest names in the cryptocurrency industry and boasts over 600 employees. It has also been described as a "watershed moment" in the cryptocurrency space, with investors warning that there are risks and potential for government regulation. In 2017, Ehrsam left Coinbase but remains on its board, and owns approximately 6% of the company's stock. As of the end of the first quarter of 2021, the company has reported up to $1.8 billion in revenue and about $800 million in net income. It has 56 million users.

The stock has been down almost 80% since its April 2021 IPO, and it has been a consistent seller for Ehrsam. Ehrsam, a former Coinbase co-founder, is now a board member and managing partner of Paradigm, which owns 3.6 million shares. But while Ehrsam is now in the green on his recent purchases, he remains in the red on his Coinbase shares.

ARK Innovation

Investors in ARK Innovation and ARK Fintech Innovation ETFs bought 33,092 and 282,894 shares, respectively, of Coinbase. At Thursday's closing price, the purchases value the company at $110 million. Those funds are up by more than 166% in the past year. Coinbase's steep drop echoes a number of factors, including the weakening cryptocurrency market and the decline in investor interest in speculative assets.

The exchange-traded fund, ARK Innovation, holds shares of 45 companies. While it holds a large position in Coinbase, its stake is still relatively modest compared to its holdings yesterday. Cathie Wood, an investor with the Cathie's Ark fund, has sold 170,000 shares of Coinbase, which is a relatively small percentage of its total holdings. Wood has been a vocal critic of the company, including taking jabs at GM in past interviews.

The funds have also invested in Tesla, another company focused on cryptocurrencies. But the Ark funds also sold some of their Tesla shares. The acquisition of Coinbase by Cathie Wood's company will give them an indirect exposure to the cryptocurrency market. In March, Wood talked up Tesla in her book, and last year she forecasted that its share price would hit US$3,000 by 2025. The move comes a week after she purchased a majority of the company's stock.

Brian Armstrong

Coinbase is the largest cryptocurrency exchange in the United States and was the first major cryptocurrency focused company to go public. CEO Brian Armstrong has recently become the latest cryptocurrency executive to buy a luxury home. Another CEO, Jonathan Yantis, bought a 70-acre estate outside Denver for $12.5 million. But, how much is Brian Armstrong worth? The company's IPO valuation is not enough to justify buying a luxury home, but Armstrong certainly can afford to live the life of luxury.

Armstrong's background in economics made him think that cryptocurrencies weren't much better than Monopoly money. He was struck by the unfairness of global financial systems while living in Buenos Aires, where hyperinflation was eating away at the wealth of the poorest. The entrepreneur went on to co-found Paradigm, an investment firm that recently announced a $2.5 billion venture fund. But that doesn't explain his motivation to purchase Coinbase.

After the company's direct listing in April, Armstrong's estate was a hot property. He and his wife bought a 19,000-square-foot mansion and a 6,600-square-foot five-bedroom guest house. The mansion was designed by British architect John Pawson. Coinbase's stock rose sharply, reaching $13 billion on the first day of trading. Today, Armstrong's net worth is $9.6 billion according to Bloomberg's Billionaires Index.

Jupiter Asset Management

A few weeks ago, investors from Azora Capital LP and Jon Yarbrough's family office sold all their shares in Coinbase Global Inc. Coinbase, the largest crypto exchange in the United States, had struggled after missing profit expectations and reporting lower trading volume. Investors were spooked when the company reported a loss of nearly 30 percent and on Monday, it plunged 3.6%. Its shares are now down 74% year to date.

During the first quarter of 2015, investors in Wood's ARK Innovation fund added 1.5 million Coinbase shares. As of March 31, the fund had slightly less than seven million shares of the company, making it the tenth-largest position. The fund is one of the largest funds of its kind and Wood's move is not surprising. Wood has been a longtime investor in the company and has previously recommended that investors consider buying Coinbase shares to stay ahead of the competition.

Jupiter Asset Management has a history of buying and selling companies. The firm has acquired several companies. It has been one of the biggest cryptocurrency exchanges and has a history of investing in startups. Its latest investment was in the technology giant, ARK Innovation. The association has more than $5 billion of assets under organization. However, there have been some negative news surrounding the company in the last few years, including a lawsuit from a former executive.

Azora Capital LP

Jupiter Asset Management, Azora Capital LP, and the family office of Jon Yarbrough have all divested from Coinbase Global Inc., the company that launched the largest cryptocurrency exchange in the United States. The company has been in the news lately after missing earnings expectations and reporting lower trading volumes. The shares of the crypto exchange fell nearly 30 percent on Monday, with a 74% loss year to date. Jupiter Asset Management, Azora Capital LP, and Yarbrough Capital all sold all of their Coinbase stock on Monday.

Wood's ARK Innovation fund added 1.5 million shares of Coinbase during the first quarter of 2017, and the fund holds slightly less than seven million shares as of March 31. That makes Coinbase Wood's tenth-largest position. As of March 31, ARK Innovation had a slightly larger position in Coinbase, but it has not yet disclosed how many shares it holds. The fund holds slightly less than 7 million shares of Coinbase, making it the tenth-largest fund in the market.

Jon Yarbrough's family office

Investors are dumping their cryptocurrency holdings. Azora Capital LP, Jupiter Asset Management, and Jon Yarbrough's family office have sold their entire stake in the cryptocurrency exchange company Coinbase Global Inc. This move comes after Coinbase failed to meet its earnings expectations and reported lower trading volumes. On Monday, the company's stock price fell 3.6 percent, while its stock price is down nearly 74 percent year-to-date.

Edwards is a graduate of the University of California, Berkeley, and the Wharton School. He married Lori in 1968. Together they have three youngsters and 10 grandkids. Jon and Lori are members of Giving Pledge. The family has been investing in businesses and nonprofits for more than 40 years. This has made them extremely well-rounded investors. They are also active members of the Giving Pledge.

Tiger Global Management

Investors should be cautious about the company's financial prospects after it disclosed profitability in 2018. The company has been talking to investors about a secondary stock sale that would allow existing investors to sell their shares and cash out without raising new money. But investors should be wary, as the deal has been moving very slowly. Even Tiger Global's chief executive, Ben Graham, has said that the company needs to do more research before making any investment.

As for the acquisition, it's worth remembering that Tiger Global has moved out of the crypto trading and venture capital businesses. The company has recently led a $40 million Series A round for blockchain banking startup BVNK, which is currently valued at $340 million post-money. Another recent acquisition by Tiger Global is Blockworks, a free newsletter that is aimed at helping investors stay on top of new developments in the crypto economy.

While Tiger Global has a history of investing in late-stage companies, it's also well-known for its aggressive dealmaking. In the first half of 2018, the company backed 335 companies, an average of 1.3 deals per business day. But that pace accelerated in the first quarter of this year. The firm has already raised $12.7 billion for its latest venture capital fund. If that pace continues, Coinbase could be ready to raise more money for the rest of its investors.