The leading e-commerce platform Shopify CEO Tobias Lütke has invested around $3 million in Coinbase stock over the past two months. He has been actively buying the dip every week since the start of August.
The billionaire tech entrepreneur made all his purchases under a Rule 10b5 trading plan which was adopted on May 26, 2022, when Coinbase stock traded for just under $70 after falling nearly 75% since the start of the year.
Lütke purchased Coinbase stock at $62 in early September and at $97.24 in mid-august. As per SEC filings, he has bought 40,315 shares for $2,949,833 at an average price of $73.17.
He became a Coinbase board member in February and currently holds the title of director which requires him to file trades with the SEC. However, Lütke repeated purchases are rare among company insiders.
Even one other Coinbase executive has bought the company’s stock since it went public via direct listing last week.
Amid the rise of insider trading cases, Coinbase also got tangled last month. Nikhil Wahi, the brother of Ishan Wahi, a former product manager at Coinbase, pleaded guilty to engaging in Coinbase’s insider trading in cryptocurrency by using confidential information.