Lutke Tobias, a director at Coinbase Global (COIN), recently bought 10,520 shares. The buy increased his holdings by 7 percent, and came to a total cost of just over $365,000.
The director has been a regular buyer of shares, with over a dozen purchases since August. Other company executives have exercised options or sold shares over the same time, even as the stock has been declining heavily in recent months.
Overall, company insiders own 1.8 percent of the cryptocurrency brokerage.
Coinbase shares have declined along with transactions in the cryptocurrency space this year, with shares down a whopping 87 percent.
With fewer transactions, the brokerage business has seen a big drop, with overall revenues dropping by 56 percent. If the crypto market recovers in the years ahead, however, this may be on par with the revenue drops seen in stock brokerages.
Action to take: Investors interested in the stock may want to wait for the crypto market to stop declining. As things level out, shares should be able to regain their profitability. And in the next crypto bull market, the company can potentially move far higher from here… but we’re not at that point yet.
For traders, the current downtrend is likely to continue in the months ahead. The March $25 puts, last going for about $2.65, offer mid-to-high double-digit returns in the coming months.
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.