Last Updated on May 13, 2023 by Bitfinsider
Coinbase’s existing investor, crypto venture capital firm Paradigm, purchased more shares in the exchange operator valued about $50 million earlier this week.
According to a regulatory filing, Paradigm co-founder Fred Ehrsam reported the share acquisition to the US Securities and Exchange Commission on Thursday. Ehrsam was also a co-founder of Coinbase from 2012 to 2017 and currently serves on the company’s board of directors.
On Tuesday and Wednesday, Paradigm’s business, Paradigm One LP, purchased 810,000 Coinbase shares at an average price of $61. According to the filing, two Paradigm firms — Paradigm One LP and Paradigm Fund LP — now own 4.5 million Coinbase shares. Ehrsam also holds 1.1 million Coinbase shares through the Frederick Ernest Ehrsam III Living Trust.
Despite Coinbase’s ongoing struggle with the Securities and Exchange Commission, Paradigm is increasing its investment in the firm. Earlier this week, Paradigm filed an amicus brief in favor of Coinbase’s case against the SEC, which aims to compel it to react to a request for rulemaking for the cryptocurrency industry.
“Paradigm, and the entrepreneurs it supports, have a strong interest in ensuring that the SEC is held accountable for its delay in responding to Coinbase’s rulemaking petition,” the VC firm stated in its brief, adding that the delay has put the industry in limbo.
A court has ordered the SEC to reply to Coinbase’s complaint about how it applies securities laws to digital assets by the end of next week.
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