Coinbase and MicroStrategy executives emerged as major insider sellers in the US market last year, garnering significant attention. As the broader market rallied, crypto industry insiders sold significant stakes.
Securities and Exchange Commission (SEC) sawdust revealed that 500 insiders collectively sold $36.9 billion worth of stock in 2024, with prominent activity from crypto sector leaders.
Brian Armstrong, CEO of Coinbase, ranked among the top eight sellers by selling $636 million in COIN shares. Key executives Fred Ehrsam and Emilie Choi contributed to Coinbase’s total insider sales reaching $1.25 billion, placing the company in seventh place among US companies by insider sales volume.
Michael Saylor, the founder of MicroStrategy and a prominent proponent of Bitcoin, immediately followed by selling $410.8 million worth of MSTR shares, making him 13th. In total, MicroStrategy insiders sold $567.8 million worth of stock, placing the company in 11th place nationwide.
Coinbase & MicroStrategy Are Growing — But Insiders Are Cashing Out
The insider selling coincided with a rally in the crypto market that sent shares of Coinbase and MicroStrategy outperforming much of the S&P 500. Coinbase, riding the wave of Bitcoin’s price momentum, saw a year-over-year gain of over 43%. Starting 2024 at $173.02, COIN closed the year at $248.30, with additional gains of nearly 6% already recorded this year.
MicroStrategy did even better. Its shares are up 358.5% in 2024, driven largely by Bitcoin’s increasing stake and the company’s correlation with digital assets. MSTR’s meteoric rise has been fueled by the company’s commitment to its “21/21 Plan,” an ambitious strategy focused on aggressive Bitcoin acquisitions.
Although both companies had outstanding stock results, insider selling raised eyebrows. Crypto influencer Tommy Famous has criticized the sheer scale of insider trading, warning of potential damage to the sector’s credibility. He questioned the contradiction of promoting decentralization while making huge profits, calling for transparency and accountability.
The market is wavering despite the good results
Bitcoin’s New Year’s rally fueled optimism with a 5.50% rise in the first week, with 78% of investors increasing BTC holdings in 2025, according to a CNF report. Despite this increase, market confidence faces challenges. Key institutions, including BlackRock, sold significant holdings of Bitcoin as El Salvador scaled back its aggressive adoption strategies. In addition, Tether’s lack of new token issuance indicates cautious market sentiment.
MicroStrategy, a previously staunch supporter of Bitcoin, has turned its attention to the decline in cryptocurrency purchases. This change, along with other conservative market actions, raises concerns about the sustainability of Bitcoin’s bullish outlook.
Looking ahead, MicroStrategy’s planned large Bitcoin acquisitions for 2025 are under scrutiny, highlighting questions about insider confidence and the company’s strategy. His future decisions may either strengthen his leadership or cause increased skepticism. At the same time, the steady growth of Coinbase shares continues to attract investor interest, although insider selling remains significant.
