Brian Armstrong’s Wealth Soars by $2 Billion Following Election Results

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As a seasoned crypto investor and the co-founder of Coinbase, I can confidently say that the recent developments in the industry have been nothing short of exhilarating. The surge in Coinbase shares, fueled by the victory of pro-crypto candidates, has not only boosted my personal wealth but also signaled a promising future for the entire crypto ecosystem.

As a researcher, I experienced an extraordinary moment in the cryptocurrency world last night. Pro-crypto contenders triumphed in crucial elections, leading to a surge in investor confidence and, consequently, rising stock prices.

On Wednesday, Coinbase’s shares soared by an impressive 30%, setting a new all-time high for the company. Investors are elated as they witness Coinbase’s effective advocacy for candidates who endorse cryptocurrency, suggesting a potential shift towards a more crypto-friendly political environment.

Brian Armstrong, one of Coinbase’s co-founders from 2012 and the company that went public in 2021, continues to be its largest shareholder. He holds approximately 34.8 million Class A and Class B shares. Due to the significant increase in stock value on Wednesday, his stake appreciated by around $2.1 billion, elevating his total assets to approximately $9 billion.

Crypto-Friendly Candidates Win Big

In a recent post on X, Armstrong expressed that being against cryptocurrency is poor politics, as Ohio Republican Bernie Moreno defeated incumbent Democrat Sherrod Brown in their Senate race. In a more detailed post on Wednesday, Armstrong emphasized that this election was a significant victory for cryptocurrency.

Bitcoin saw a substantial surge, climbing more than 9% to touch an all-time high of over $76,400, as indicated by Brave New Coin’s Bitcoin Liquid Index. A representative from Coinbase chose not to provide additional comments, yet the market’s response clearly reflects investor optimism.

In a recent report, Coinbase’s political action committee, Fairshake, announced that out of the 58 candidates they backed, 46 were successful in their elections. Twelve races remain undecided. The company heavily supported pro-cryptocurrency politicians to foster a more advantageous regulatory landscape for the industry.

Approximately forty million dollars in cryptocurrency investments were aimed at challenging Senator Sherrod Brown, who chairs the Senate Banking Committee. A Political Action Committee (PAC) financed five advertisements to boost the visibility of Bernie Moreno, a blockchain entrepreneur, who was previously not well-known within the political sphere prior to this race.

Last year, the Stand With Crypto Alliance – initiated by Coinbase – gave Moreno an ‘A’ grade, while Brown received an ‘F’. Moreno successfully seized the seat, garnering 50.3% of votes to Brown’s 46.3%. This victory was instrumental in giving the Republicans a majority in the Senate, coinciding with Donald Trump’s win as Republican nominee in the presidential election.

Moreno expressed heartfelt appreciation for Ohioans’ strong backing during the election. He is eager to collaborate with the incoming Republican Senate majority to address economic issues, fortify our borders, and restore America’s domestic and international standing.

Armstrong’s Growing Political Influence

Despite the crypto industry’s significant backing, Moreno’s statement did not mention cryptocurrency. For Armstrong, however, politics has become an integral part of his role as he seeks a friendlier Washington and more accommodating regulations.

Last year, Gary Gensler, as Chair of the Securities and Exchange Commission, filed a lawsuit against Coinbase, accusing them of selling unregistered securities. A judge decided that this case should be heard by a jury. While Coinbase has been actively contesting these charges, they have also expressed their willingness to work with regulators in order to develop suitable regulations for the burgeoning crypto industry.

Over time, Armstrong’s visits to Washington D.C. have become more frequent. At first, these visits were rare, eventually moving to a quarterly schedule, and now they happen regularly. In his earlier trips, Armstrong noted that few people grasped the concept of cryptocurrency. Now, however, the focus is on setting clear rules and drafting effective legislation for cryptocurrencies within the United States.

During the 2024 election season, Coinbase ranked high among corporate contributors, giving more than $75 million to Fairshake and its associated political action committees (PACs). Moreover, they have promised an additional $25 million for pro-cryptocurrency super PACs in the 2026 midterm elections. Brian Armstrong, the company’s CEO, personally donated over $1.3 million to a variety of candidates at different levels.

 

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2024-11-08 16:20