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Coinbase Shareholders | Who owns the most Coinbase shares?

The largest share of Coinbase shares is held by institutional investors, accounting for 47.89% of the company’s total shares. Photo: askarim/Shutterstock

based in the United States Coinbase Global (PIECE OF MONEY) is the second largest cryptocurrency exchange in the world by trading volume and is used by stock market investors as a proxy to take positions in the cryptocurrency markets without having to purchase coins or tokens.

Coinbase listed on the Nasdaq stock exchange in April 2021, at the height of a cryptocurrency rally. Since then, COIN stock price has since fallen 78% as crypto markets have turned decidedly bearish.

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Why is it important to know who owns the most Coinbase shares? Larger shareholders can change the stock price if they buy or sell shares in large volumes, which in turn affects the value of your investment/trade.

So how many stock market insiders does Coinbase hold, and how does that compare to retail and institutional investments in the company?

In this article, we take a look at the shareholder breakdown of COIN.

Who owns COIN shares?

There are approximately 225 million Coinbase shares outstanding at the time of writing (Oct 7), according to data from Wall Street Zen. What is the balance of Coinbase shareholders between institutional, retail, and in-house investors?

On Oct. 7, the largest share of Coinbase shares was held by institutional investors, who accounted for 107.83 million shares, or 47.89% of the company’s total shares, according to data from Wall Street Zen. Retail investors held 76.8 million or 34.11% of the shares, while insiders held the remaining 40.5 million.

Ownership breakdown

Source: Wall Street Zen

Who are the Coinbase shareholders with the largest holdings? According to Wall Street Zen, there are two inside investors among Coinbase’s five largest shareholders, with American entrepreneur and tech investor Marc Andreessen being the largest shareholder with a 6.32% stake of 14.2 million shares. valued at $938.62 million at the time of writing (Oct 7).

Coinbase co-founder Frederick Ernest Ehrsam III is the fifth largest shareholder, with a 3.78% stake, or 8.5 million shares valued at $561.62 million.

Coinbase insiders have bought more shares of the company than they have sold over the past year, buying more than 1.36 million shares vs. selling 1.19 million shares .

Coinbase’s largest institutional shareholders are AH Equity Partners III, one of Marc Andreessen’s investment vehicles, with a 4.83% stake, Vanguard Group with a 4.74% stake, and ARK Investment Management with a stake of 3.98%.

Let’s take a closer look at the top Coinbase shareholders and their reasons for owning the stock.

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Top Five Coinbase Shareholders

Marc Andreessen

Marc Andreessen’s venture capital firm, Andreessen Horowitz, led the $25 million Series B funding round to Coinbase in December 2013. Andreessen has served on the company’s board of directors since December 2020.

In addition to Andreessen’s individual stake in Coinbase, Andreessen Horowitz holds an additional 1.43% stake, equivalent to 3.21 million shares. Kathryn Haun, general partner at Andreessen Horowitz until the end of 2021, when she left to launch her own cryptocurrency investment fund, holds a 1.14% stake.

According to Coinbase’s initial public offering (IPO) prospectus filed with the Securities and Exchange Commission (SEC), Andreessen held 5.5 million Class A shares and 23.96 million Class B shares in April. 2021.

Class B shares were convertible into Class A shares at the time of the initial public offering (IPO). This made him the company’s largest individual shareholder behind co-founder and CEO Brian Armstrong, who held 2.75 million Class A shares and 36.85 million Class B shares.

Andreessen is known for co-founding Netscape, originally called Mosaic, the first web browser in 1994, supporting startups in the dotcom era, and more recently investing in AirBnb (ABNB), Facebook (now Meta Platforms) ( META), Lyft (LYFT), Pinterest (PINS), Slack and Stripe.

Andreessen is optimistic about the long-term potential of cryptocurrencies, and in May Andreessen Horowitz closed his fourth cryptocurrency investment fund for $4.5 billion. It is therefore not surprising that Andreessen would hold a stake in Coinbase. A filing with the SEC shows that Andreessen sold some of his Coinbase shares in August 2021, but he remains the company’s largest shareholder.

AH Equity Partners III

Marc Andreessen is also linked to Coinbase’s largest institutional investor, as according to SEC filings, AH Equity Partners III is an investment vehicle for Andreessen Horowitz.

In addition to the 4.83% stake held by AH Equity Partners III, data from Wall Street Zen shows another 1.75% stake held by AH Equity Partners II Parallel and 1.01% held by AH Equity Partners LSV I.

vanguard group

Founded in 1975, Vanguard Group is the second largest asset management company in the world behind Blackrock, according to ADV Ratings. Vanguard offers a range of investment, advisory and retirement products to individual investors, institutions and financial professionals.

As of June 30, 2022, Vanguard had more than $7 billion in assets under management (AUM) from 30 million investors and 411 funds globally.

Vanguard has taken the initiative to create stock index mutual funds and exchange-traded funds (ETFs) to make investing more accessible and affordable for retail investors. Vanguard’s low-cost funds track the performance of benchmark indices such as the S&P 500 (US500) or the Nasdaq 100 (US100) to give investors exposure to the markets without having to invest in individual stocks or pay high fund management fees.

With its 4.74% stake in Coinbase, valued at around $704 million, Vanguard is among institutional investors who have recognized the impact of cryptocurrencies as blockchain technology becomes more mainstream. Vanguard has been using blockchain technology for the distribution of capital markets data since 2017.

ARK Investment Management

ARK is the investment management company founded by Cathie Wood in 2014. It “focuses only on disruptive innovation”. ARK offers active management products, including ETFs, mutual funds and managed accounts, with a focus on the long-term effect of disruptive technologies. As of June 30, 2022, ARK had $24 billion in assets under management.

Wood is bullish on the long-term potential of cryptocurrencies as an investment class, having previously called for bitcoin to rally to $100,000. The COIN stock price has tended to follow the same direction as the bitcoin price, so ARK’s 3.98% stake in the company reflects this bullish view.

ARK analyst Yassine Elmandjra wrote in August:

“Blackrock’s decision to partner with Coinbase is a strong signal that institutions are considering crypto––starting with bitcoin––as a new asset class. We agree that bitcoin has gained allocation in well-diversified portfolios.

Wood told Bloomberg in August that ARK sold 1.1 million Coinbase shares in response to a report in late July that the SEC was investigating the exchange to see if some of its cryptocurrency listings could be considered. as securities rather than digital currencies. But the company still owns more than 8.95 million shares valued at around $590 million, according to the ZEN of Wall Street The data.

Frederick Ernest Ehrsam III

Co-founder of Coinbase with CEO Brian Armstrong in 2012, Frederick Ernest Ehrsam III is the company’s second largest individual shareholder and fifth largest holder. In addition to his 3.78% individual stake in the company, Paradigm, a crypto-focused investment firm that Ehrsam co-founded in 2018, holds a 1.65% stake.

Ehram stepped down as chairman of Coinbase in 2017 but remains on the company’s board. Ehrsam continues to trade Coinbase stock, selling shares worth more than $31 million in December 2021 but buying back $75 million in May 2022, according to SEC filings and ZEN of Wall Street The data.

The bottom line

It can be useful for retail investors to understand a company’s shareholding, as large stock purchases and sales can have a significant influence on stock price performance. You can track the business activity of Coinbase’s major shareholders by checking its filings with the SEC, as regulations require companies to disclose substantial changes in shareholding.

However, you should be aware that Coinbase shareholder trading activity is only a small part of the picture and should not be the primary reason you decide to buy or sell the stock. Whether Coinbase shares are a suitable investment for you depends on your investment goals, trading strategy, risk tolerance, and portfolio size. It is essential that you do your own research before making any investment or trading decision. And never invest or trade money you can’t afford to lose.

FAQs

How many Coinbase shares are there?

As of October 7, 2022, Coinbase had a total of 225,144,441 shares outstanding, according to data compiled by ZEN of Wall Street.

How many shareholders does Coinbase have?

As of Oct. 7, 2022, Coinbase had 981 institutional shareholders who had filed ownership statements with the SEC, according to Fintel data, in addition to retail and inside investors.

Who owns Coinbase?

As of October 7, 2022, institutional investors held 47.89% of Coinbase shares. Marc Andreessen is the company’s largest individual shareholder, holding a 6.32% stake in the company in addition to shares held by his investment company, Andreessen Horowitz.

Further reading:

Commercial actions
Coinbase app on a mobile phone, candlestick charts in the background