Coinbase News This Week — ChangeHero Digest
Coinbase shares took a sharp hit on Wednesday, tumbling 5.7% after fresh data revealed CEO Brian Armstrong has liquidated more than half a billion dollars in company stock over the past nine months. The sell-off wasn't just a reaction to the numbers themselves—it was the timing. With earnings scheduled for Thursday and the stock already down nearly 42% from its January peak, investors are asking whether Armstrong's aggressive selling signals concern about the company's near-term outlook or simply smart wealth management from a founder whose fortune remains overwhelmingly tied to a single, volatile asset.
The Scale of Armstrong's Stock Sales
The numbers are hard to ignore. According to data circulated by VanEck's Matthew Sigel, Armstrong has sold approximately $545.7 million of Coinbase stock between April 2025 and January 2026. That's more than 1.5 million shares liquidated across multiple transactions, with the largest single-day sale occurring on June 25, 2025—336,265 shares at $355.37 each.
The most recent transaction Sigel cited was a 40,000-share sale on January 5 at $254.92 per share. That sale came just nine days before COIN hit its recent high of $262 on January 14. From there, the stock entered a steep decline, closing Wednesday at $153.20—down from $162.52 the prior session.
For context, COIN has traded in a 52-week range between $142.58 and $444.65. The stock is now hovering near the bottom of that band, and investors are understandably jittery about what comes next.
Armstrong's Net Worth and Concentrated Risk
Here's the important detail: even after selling over $500 million in stock, Armstrong's wealth remains deeply concentrated in Coinbase. A Bloomberg report noted that Armstrong fell from the Bloomberg Billionaires Index, with his net worth dropping more than $10 billion from a July 2025 peak of $17.7 billion. Most of his remaining $7.5 billion fortune is still tied to his 14% stake in Coinbase.
That's a staggering level of exposure. For a founder in Armstrong's position, diversification isn't just prudent—it's practically mandatory. The sales could reflect standard wealth planning rather than insider pessimism. But that nuance doesn't always translate to the market, especially when the stock is already under pressure.
Institutional Moves: Mixed Signals from Big Players
The sell-side narrative isn't just coming from Armstrong. On February 5, Ark Invest sold $17.4 million of Coinbase shares across its ETFs. Over the same period, the firm put $17.8 million into Bullish, a competing digital asset exchange. That's a notable rotation—not a full exit, but a clear signal that Ark is looking for value elsewhere in the crypto infrastructure space.
On the other hand, Goldman Sachs raised COIN to a buy rating from neutral on January 5, setting a $303 price target. Goldman's bullish thesis centers on Coinbase's growing mix of non-trading revenue—subscription services, staking, and custody—which could serve as a buffer against the cyclical swings of trading volume.
But that optimism didn't last long across the Street. JPMorgan cut its price target for Coinbase by 27% on Tuesday, citing lower trading volumes, softness in crypto prices, and decelerating growth in the stablecoin sector. Those are real headwinds, and they're showing up in the stock price.
Product Innovation: Agentic Wallets and the AI Push
In the middle of this volatility, Coinbase is still pushing forward on the product side. On Wednesday, the company launched new wallet infrastructure for autonomous AI agents. The so-called "Agentic Wallets" allow AI agents to independently hold funds, send payments, trade tokens, earn yield, and transact onchain.
It's an interesting bet on the future of crypto and AI convergence, and it aligns with Coinbase's broader strategy to diversify revenue beyond retail trading. But here's the reality: product announcements don't move the stock in the near term, especially when macro headwinds are this strong. Investors care about what's in the Q4 earnings report, which is due Thursday.
Earnings Day: The Moment of Truth
Coinbase is scheduled to report fourth-quarter and full-year earnings on Thursday, and the stakes are high. The market is bracing for softer numbers, given the broader crypto selloff and the concerns JPMorgan raised about trading volumes and stablecoin growth. If Coinbase misses on revenue or user engagement, the stock could test the bottom of its 52-week range.
On the flip side, if the company can demonstrate resilient non-trading revenue growth and offer a credible outlook for 2026, it might stabilize sentiment. But the fact that Armstrong has been selling into this environment doesn't inspire confidence among retail investors, even if the rationale is perfectly logical from a personal finance standpoint.
The Bottom Line
Brian Armstrong's stock sales are not a smoking gun, but they're adding fuel to an already nervous fire. The CEO still holds a massive stake in Coinbase, so his incentives remain aligned with long-term shareholders. But when you combine half a billion in executive sales with Ark Invest's rotation, JPMorgan's downgrade, and a stock price hovering near 52-week lows, the message is clear: the market is in wait-and-see mode.
Thursday's earnings will be the inflection point. If Coinbase can show that its non-trading revenue streams are holding up and that it's not just riding the crypto hype cycle, Goldman's bullish case has legs. If not, expect more downside. For now, the trend is defensive. Investors should demand proof of durability before buying the dip.