The CEO of the cryptocurrency exchange, Coinbase, is planning to sell off his share of the firm. CEO Brian Armstrong disclosed on Saturday that he wants to dispose of his 2% share. He said he would do this in the course of the coming year to divert funds into science and tech development.
Advancing Other Plans
Brian Armstrong is planning to finance science research at companies he co-founded. The companies include NewLimit, a biotech company, and ResearchHub, a science research company.
Coinbase’s proxy statement for 2022 showed that Armstrong has a 16% share in the company. He also controls 59.5% of the voting rights.
Armstrong took to his Twitter page on Saturday 15th of October to share the news. He disclosed to his followers that he wants to have sufficient funds for other projects in his science research companies.
Armstrong said further that he remains bullish on cryptocurrencies and the future of Coinbase. He also stated his full commitment to the growth of the crypto exchange and continuing his mission.
But Armstrong’s goal of contributing to scientific and technological research needs to get funded. He said they are focused on solving the world’s biggest challenges. Hence, they form the basis of why he needs to sell his shares to fund them.
ResearchHub and NewLimit are the baby projects at the center. Brian Armstrong, however, clarified that he intends to keep being the CEO of Coinbase. And for a long time at that.
Still Dedicated to Coinbase
He re-dedicated himself to building the business for much longer. But he is glad to contribute to society by another means. Armstrong owns a 16% share of Coinbase while he has control of 59.5% of the votes.
Coinbase shares dropped by more than 8% on Friday. It currently trades at $63.59.
JPMorgan and Goldman Sachs downgraded the shares to “sell” earlier as a result of poor outlook. That was also in turn due to the slide of the crypto market and how the low trading volumes of Coinbase shares.
Coinbase shares fell from $130 in May to trade under $50 since then. The value has risen only marginally since then. The CEO said in August that the company is planning to have a long winter.
Armstrong, however, assured investors of stability. He equally asked them to focus on services and subscriptions to aid the stability.
The crypto exchange got an operating license in Singapore this week. It also finalized an agreement with Google Cloud to permit crypto payment.
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