🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Coinbase expands board, appoints three new directors

EditorNatashya Angelica
Published 07/25/2024, 05:26 PM
© Reuters
COIN
-

Coinbase (NASDAQ:COIN) Global, Inc. (NASDAQ:COIN), a prominent player in the crypto asset space, has announced the appointment of three new directors to its board, effective immediately, as disclosed in a recent 8-K filing with the Securities and Exchange Commission. The company's board has expanded from seven to ten members following the addition of Christa Davies, Paul Clement, and Chris Lehane.

The new appointees will serve on the board until the company's 2025 annual meeting of stockholders. Davies and Clement will also join the Audit and Compliance Committee. Their compensation aligns with Coinbase's non-employee director compensation program, detailed in the company's definitive proxy statement filed on April 25, 2024.

Christa Davies brings financial expertise to the board, currently serving as the Chief Financial Officer and Executive Vice President of Global Finance at Aon plc (NYSE:AON), a vendor to Coinbase. The company reported payments to Aon of approximately $12.0 million in 2023 and about $12.6 million in the first half of 2024, under arms-length agreements.

Chris Lehane had a previous engagement with Coinbase through a master services agreement with Haun Ventures Management LP, which was terminated in April 2024. The agreement involved consulting services provided to Coinbase in exchange for a quarterly fee of $1.0 million to Haun Ventures.

Coinbase clarified that the new directors, like other executives and significant stockholders, hold accounts and use the company's services, incurring standard transaction and service fees. No family relationships exist between the new directors and any current director or executive officer, and there are no other material interests between the new directors and the company that require disclosure.

The addition of Davies, Clement, and Lehane comes at a time when the crypto industry is experiencing significant growth and regulatory developments. Their appointments are part of Coinbase's ongoing efforts to strengthen its governance and strategic oversight capabilities.

This report is based on information contained in a press release statement and the company's 8-K filing with the SEC.

In other recent news, Coinbase has expanded its board to include Chris Lehane from OpenAI, Paul Clement, a former U.S. Solicitor General, and Christa Davies, CFO for Aon. The move comes as the cryptocurrency sector seeks to increase its political influence. Concurrently, Coinbase-supported voter advocacy group, Stand With Crypto, has grown to 1.3 million members, reflecting the sector's increasing political mobilization.

In the UK, Coinbase subsidiary, CB Payments Limited, was fined £3.5 million ($4.5 million) by the Financial Conduct Authority for lacking adequate anti-money laundering controls. The fine is the first enforcement action targeting a cryptoassets trading business by the FCA. In response, Coinbase has emphasized its commitment to regulation and collaboration with financial authorities.

Citi recently upgraded Coinbase's stock from Neutral to Buy, setting a new price target at $345, up from $260. The upgrade was influenced by recent shifts in the U.S. political landscape and a significant Supreme Court decision, which could potentially lead to more favorable outcomes for companies like Coinbase.

As the U.S. presidential election nears, investors are closely monitoring stocks that may be influenced by the outcome. In the cryptocurrency and blockchain sector, companies like Coinbase have already experienced stock surges. Lastly, stocks linked to a potential Donald Trump presidency, including various cryptocurrency-related stocks, have seen significant gains.

InvestingPro Insights

As Coinbase Global , Inc. (NASDAQ:COIN) welcomes new expertise to its board, investors may find it beneficial to consider the company's recent financial data and market performance. According to real-time data from InvestingPro, Coinbase boasts a market capitalization of $56.79 billion.

The company's revenue growth over the last twelve months as of Q1 2024 is impressive at 38.87%, reflecting a significant quarterly increase of 115.6% in Q1 2024 alone. This aligns with the optimistic outlook from analysts who anticipate sales growth in the current year, as captured by InvestingPro Tips. Moreover, the company's gross profit margin stands strong at 85.66%, underscoring its ability to maintain profitability amidst its expansion.

InvestingPro Tips further highlight that Coinbase is expected to be profitable this year, with a notable price uptick of 102.51% over the last six months. This growth trajectory is supported by the fact that Coinbase does not pay dividends, potentially reinvesting earnings back into the company to fuel further growth.

For investors looking to delve deeper into the financials and future projections of Coinbase, there are additional InvestingPro Tips available, which can be accessed with a subscription. Use the exclusive coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a comprehensive investment toolset to navigate the dynamic crypto asset market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.