- Firm’s co-founder Fred Ehrsam disclosed the acquisition to the SEC on Thursday.
- Paradigm One LP, a subsidiary of Paradigm, purchased 810,000 shares of Coinbase.
Paradigm, an existing investor in Coinbase, has invested another $50 million in the exchange by purchasing more shares. Paradigm co-founder Fred Ehrsam disclosed the acquisition of shares to the U.S. Securities and Exchange Commission (SEC) on Thursday. In addition to his role as a board member at Coinbase, Ehrsam was a co-founder of the exchange from 2012 until 2017.
Paradigm One LP, a subsidiary of Paradigm, purchased 810,000 shares of Coinbase on Tuesday and Wednesday for an average price of $61.
According to the document, when the transactions were made, two Paradigm companies (Paradigm One LP and Paradigm Fund LP) jointly owned 4.5 million shares in Coinbase. The Frederick Ernest Ehrsam III Living Trust, which Ehrsam controls, holds 1.1 million Coinbase shares.
Paradigm Backs Coinbase
Despite Coinbase’s continuing fight with the SEC, Paradigm has increased its investment in the firm. This week, Paradigm joined a lawsuit that Coinbase filed against the SEC last month to force the SEC to react to a request for regulation in the cryptocurrency business by filing an “amicus brief” in favour of the complaint.
The crypto VC firm stated in its filings:
“Paradigm, and the entrepreneurs it backs, have a strong interest in ensuring that the SEC be held to account for its delay in responding to Coinbase’s rulemaking petition.”
The court has given the SEC until next week to answer Coinbase’s lawsuit against the agency’s interpretation of securities regulations as they relate to digital assets. Coinbase’s first-quarter earnings report beat Wall Street forecasts. The $736 million in sales recorded by the corporation is much more than the $658 million predicted by polled industry experts.
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