Brian Armstrong, co-founder and chief executive officer of Coinbase Inc., speaks during the Singapore Fintech Festival, in Singapore, on Friday, Nov. 4, 2022.
Bryan van der Beek | Bloomberg | Getty Images
Election Day proved hugely successful for the crypto industry. Nobody was a bigger winner than Coinbase CEO Brian Armstrong.
Coinbase shares soared 31% on Wednesday, their best day on record, as investors celebrated the company’s victorious efforts to get pro-crypto candidates into office. Fairshake, the Coinbase-backed PAC, says that of the 58 candidates it supported, 46 won, with the remaining contests 12 still undecided.
Armstrong, who co-founded Coinbase in 2012 and took it public in 2021, remains the crypto exchange’s biggest investor, with ownership of well over 10% of the company’s outstanding shares. As of the latest proxy filing, he owned 34.8 million Class A and Class B shares, a stake that jumped by about $2.1 billion in value on Wednesday to almost $9 billion.
“Being anti-crypto is simply bad politics,” Armstrong wrote in a post on X, after Ohio Republican Bernie Moreno was declared the winner in his state’s Senate race over incumbent Democrat Sherrod Brown.
In a lengthier follow-up post on Wednesday, Armstrong said “no matter how you slice it, this election was huge win for crypto.”
Bitcoin jumped over 9.5%, reaching a record of over $76,400.
A Coinbase spokesperson declined to comment further.
Some $40 million of crypto money was directed at defeating Brown, the chairman of the Senate Banking Committee. One PAC paid for five ads designed to boost awareness of Moreno, a blockchain entrepreneur with very little name recognition entering the race.
The Stand With Crypto Alliance, which Coinbase launched last year, gave Brown an “F” grade, while it issued Moreno an “A.”
Moreno flipped the seat, winning 50.3% of votes cast to 46.3% for Moreno, according to NBC News. His win helped ensure a majority for the Republicans in Senate, alongside Republican nominee Donald Trump’s victory in the presidential contest.
“I am so grateful to Ohioans for their resounding support in this race,” Moreno said in a statement Tuesday night. “I look forward to working with the new Republican Senate majority to fix our economy, secure our border, and return to American strength at home and abroad.”
Moreno’s statement made no mention of crypto, despite the fact that the industry bankrolled his campaign.
Politics pays off
Securities and Exchange Commission Chair Gary Gensler sued Coinbase last year over claims that it sells unregistered securities. A judge has since ruled that the case should be heard by a jury. Coinbase has fought back vociferously, and has also said that it wants to work with regulators to come up with a proper set of laws governing the nascent industry.
Republican nominee for U.S. Senate Bernie Moreno addresses supporters at Brecksville Community Center on November 4, 2024 in Brecksville, Ohio.
Stephen Maturen | Getty Images
Armstrong told CNBC in September that his visits to the nation’s capital used to take place once or twice a year. Then it got to be at least a quarterly occasion. And the pace has only increased.
“In the beginning, a lot of people didn’t know what crypto was,” Armstrong said of his earlier trips. Now, “the discussion has advanced, really, to, how do we pass clear rules, create legislation in the United States?”
In the 2024 election cycle, Coinbase was one of the top corporate donors, giving more than $75 million to Fairshake and its affiliate PACs, including a fresh pledge of $25 million to support the pro-crypto super PAC in the 2026 midterms. Armstrong personally contributed more than $1.3 million to a mix of candidates up and down the ballot.
Coinbase stayed out of the presidential contest and focused its finances exclusively on congressional races, in an effort to assemble a group of lawmakers with favorable views of the industry.
Coinbase’s big post-election pop more than makes up for the 15% drop in the stock last week after the company reported disappointing quarterly results due to lower transaction revenue and a drop in subscriptions services revenue.
Paul Grewal, Coinbase’s chief legal officer, attended multiple fundraisers for Trump in the months before the election. As the results were rolling in Tuesday, Grewal said in a post on X that he hopes the SEC “understands what has happened tonight.”
“Stop suing crypto,” Grewal wrote. “Start talking to crypto. Initiate rulemaking now. There’s no reason to wait.”
Armstrong reposted the Grewal’s comments, adding one word of his own: “True.”
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