Paradigm, a current investor in Coinbase, has added $50 million to their investment by buying more shares. Fred Ehrsam, co-founder of Paradigm and former co-founder of Coinbase, announced the purchase to the U.S. Securities and Exchange Commission on Thursday. Ehrsam currently serves as a board member at Coinbase. A subsidiary of Paradigm, called Paradigm One LP, bought 810,000 shares of Coinbase over Tuesday and Wednesday at an average price of $61.
Paradigm Venture Capital Buys $50M Worth of Coinbase Shares
Crypto venture capital has invested an additional $50 million in Coinbase by purchasing more shares. According to documents filed with the US Securities and Exchange Commission (SEC) by co-founder Fred Ehrsam, the company’s subsidiary bought 810,000 shares of Coinbase on Tuesday and Wednesday for an average price of $61.
Paradigm, which was already an existing investor in Coinbase, joined a lawsuit filed by the exchange against the SEC last month. The lawsuit aims to force the SEC to react to a request for regulation in the cryptocurrency industry by filing an “amicus brief” in favor of the complaint.
Despite Coinbase’s ongoing legal battle with the SEC, venture capital has increased its investment in the company. When the transactions were made, two Paradigm companies jointly owned 4.5 million shares in Coinbase, while the Frederick Ernest Ehrsam III Living Trust, controlled by Ehrsam, held 1.1 million shares.
The court has given the SEC until next week to respond to Coinbase’s lawsuit against the agency’s interpretation of securities regulations as they relate to digital assets. Meanwhile, Coinbase’s first-quarter earnings report beat Wall Street forecasts, with $736 million in sales recorded, much higher than the $658 million predicted by polled industry experts.
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