Crypto VC Paradigm Acquires $50M in Coinbase Shares

Paradigm, an existing investor in Coinbase, purchased $50 million worth of shares in the exchange operator las week, according to a Thursday filing to the US Securities and Exchange Commission.

The shares were bought by Paradigm’s entity Paradigm One LP at an average price of $61 on Tuesday and Wednesday.

After the transactions, two Paradigm entities — Paradigm One LP and Paradigm Fund LP — now hold a total of 4.5 million Coinbase shares. Fred Ehrsam, Paradigm’s co-founder and former Coinbase co-founder, also owns 1.1 million shares of Coinbase via the Frederick Ernest Ehrsam III Living Trust.

The investment comes amid Coinbase’s battle with the SEC. Paradigm recently filed an amicus brief in support of Coinbase’s lawsuit against the SEC, which seeks to compel it to respond to a request for rulemaking for the crypto industry.

The SEC must respond to Coinbase’s complaint by next week.