Fred Ehrsam bought more than one million shares of Coinbase (COIN) last week, valued at about $75 million, and jumped in as the crypto exchange's stock price plunged following the company's weak earnings report.
According to a Form 4 filed with the SEC, Ehrsam - through Paradigm, the venture capital firm he co-founded - bought more than 706,000 shares of Coinbase on May 13 at an average price of about $70 apiece, worth nearly $50 million. On May 17, he bought another 385,000 shares at an average price of about $65, worth about $25 million.
These purchases brought Paradigm's stake in Coinbase to more than 3.6 million shares. Ehrsam also holds 1.1 million shares through a trust.
Last week's purchases came at a time when Coinbase shares were down more than 70% in 2022 and more than 80% from the all-time high reached shortly after the company's IPO 13 months ago. Ehrsam and companies affiliated with him have been steady sellers of Coinbase shares since the company went public in April 2021, dumping hundreds of millions of dollars worth.
Ehrsam was previously a co-founder of Coinbase and currently serves on the company's board of directors. He and Matt Huang are co-founders and managing partners of Paradigm.