With IPO in sight, Coinbase CEO can fatten bank account by more than $3 billion
Expected for the coming weeks, Coinbase IPO is being seen as a milestone and, at the same time, a fire test for the cryptocurrency market. The American company will be the first in the industry to go public, amid the intense appreciation of virtual currencies in recent months.
Surrounded by expectations, the public offering carries an additional issue for a particular name: Brian Armstrong, Coinbase’s co-founder and CEO. According to the Bloomberg agency, with the IPO, the entrepreneur can fill his bank account with more than US $3 billion, or more than US $1 million per working day, in a period of ten years.
This possibility is explained in a compensation package closed in 2020 that guaranteed Armstrong about $60 million in compensation, of which $56.7 million is equivalent to stock options in the company.
According to documents registered by Coinbase with the Securities and Exchange Commission (SEC), the American capital market regulator, the entrepreneur received, in August last year, 9.3 million stock options from the company, valid for ten years, which represents a 3.8% share of the outstanding paper, with a price of $23.49 each, at the time.
Armstrong will be able to increase his equity when the company’s stock price reaches the minimum value of US $200. His options will be fully exercised if the stock comes close to US $400, which would represent an appreciation of about 1,600%.
With his estimated $15 billion stake in Coinbase, Armstrong founded the company in 2012, alongside Fred Ehrsam. The platform, which has already raised $547.3 million in 14 rounds, from funds like Andreessen Horowitz and Tiger Global, today has more than 43 million users and trades more than 40 digital currencies, including bitcoin.