Tobias Lutke, a director at Coinbase Global (COIN) recently added 5,291 shares. The buy increased his holdings by 9.6 percent, and came to a total cost of just under $361,000.
The buy came a week after the director bought 4,482 shares, paying about $338,000, and the week before that spent $365,000 on 5,894 shares. Overall, insiders have largely been sellers since the company went public in early 2021, with these recent buys marking the first time buying has exceeded selling.
In total, company insiders own about 1.8 percent of shares.
The cryptocurrency brokerage firm is down 77 percent in the past year. The slowdown in cryptos has also led to a 64 percent drop in revenue, as both retail and institutional interest in cryptocurrencies has slowed.
Action to take: Shares likely have more downside ahead, as cryptocurrencies remain out of favor with the market amid a slowing economy and rising interest rates. However, long-term buyers may have a chance to buy lower in the coming weeks and even months and pick up a long-term rebound for the cryptocurrency brokerage of choice for institutional investors.
For traders, the January 2023 $50 puts, last going for about $8.50, could deliver mid-double-digit returns on a further decline in shares in the coming months. On signs of a change in the markets, crypto may take off, so look to take quick profits on this trade and be ready for long-side opportunities next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.