After the 2024 election success, Coinbase CEO Brian Armstrong and other crypto leaders are reaping billions thanks to huge PAC expenditures and pro-crypto election promises.
Coinbase and Crypto PAC’s Spending
Coinbase CEO Brian Armstrong and other crypto executives look set to end 2024 with higher wealth as their political campaign investments pay off. Armstrong, Ripple Labs CEO Brad Garlinghouse, and venture capital titans at Andreessen Horowitz funneled millions to campaign finance.
Armstrong’s net worth rose exponentially after Trump’s election victory due to a planned, structured sale of his stocks. His company invested $74 million into the Fairshake PAC, which funded many pro-crypto congress members.
After the elections, Coinbase’s stock surged as its valuation increased by $21 billion, and the stock price rose from $186 to $276. Over six weeks, he sold more than $437 million worth of his stocks, worth $308 million before the elections.
This pushed Armstong’s earnings to about $129 million. Nevertheless, he still holds a 10% stake in Coinbase. Meanwhile, Armstrong defended his stock sales, maintaining that they were part of a diversification scheme to invest in what he termed ‘moonshot’ projects.
A few months before the elections, he filed his sales strategy with the SEC to avert regulatory allegations.
Ripple CEO’s Wealth Up Tenfold with XRP’s Price Rise
Ripple vice president Brad Garlinghouse also profited substantially from the election outcome. A PAC connected with Ripple donated $73 million to campaigns supporting pro-cryptocurrency candidates.
After the election, the price of XRP spiked to $2.32 from $0.50, making it the fourth-largest cryptocurrency. Despite concerns regarding Ripple’s private valuation, analysts believe the company’s value will increase significantly after the elections.
Garlinghouse, a major shareholder in Ripple and an XRP whale, associated the over $1 trillion rise in the total crypto market cap after the elections with positive regulatory prospects. Ripple’s contribution to US politics went further than campaign donations.
After Trump won the elections, the firm contributed $5 million worth of XRP coins to Trump’s inauguration, claiming it was to support Trump’s pro-crypto administration.
a16z Founders Profited from Portfolio Appreciation
Venture capital firm a16z contributed $70 million to crypto-related campaigns, suggesting its willingness to engage in more aggressive business practices. As a result, the firm’s founders, Marc Andreessen and Ben Horowitz, have been enjoying increased value for their investments.
The firm has also been actively targeting crypto projects with a high chance of success. Examples were when they bought a stake in Uniswap, Coinbase, and Solana.
Coinbase and Crypto PACs Drive Congressional Success
The Fairshake PAC, funded by a16z, Ripple, and Coinbase, emerged as the fund that supported the highest number of candidates in the US elections. The PAC used $130 million to fund campaigns of over 53 candidates into winning positions.
However, some critics argue that the spending from players in the crypto sectors was purely politically motivated. Rick Claypool, a research director at Public Citizen, described the strategy as “purely in the interests of the specific industry.”
Mark Hays of Americans for Financial Reform shared similar sentiments, noting that “the growth potential is evident, but crypto and its market expansion is newer.” Meanwhile, the effects of this support have been immediate.
After the elections, the broader crypto market cap rose significantly, and regulatory threats decreased substantially.
Bitcoin Hits Milestone, Industry Celebrates Regulatory Shift
December was a memorable month for Bitcoin and the crypto industry, as the leading cryptocurrency finally crossed the $100,000 mark. The co-CEOs of Gemini, Tyler, and Cameron Winklevoss, were not shy about connecting this feat to leading industry players’ political attempts.
On X, Tyler said, “The shackles are off, $100k incoming,” indicating that Trump would ease the SEC’s limitations on the crypto industry. Meanwhile, Cameron Winklevoss stated that funds previously spent on legal battles could now be helpful for innovation.
Other industry players share similar optimism, adding that regulations would soon become more transparent and regulators would be less focused on alleging regulatory violations against crypto companies.
