On Thursday, Coinbase Global exceeded estimates for second-quarter revenue due to higher interest income, and its management stated that the cryptocurrency exchange anticipates winning its legal battle with the U.S. securities commission.
The US Securities and Exchange Commission filed a lawsuit against the business and its rival Binance in June. It was claimed that Coinbase exchanged at least 13 cryptocurrencies that constitute securities without declaring them to the appropriate authorities.
The SEC's move signalled a drastic escalation in the campaign against the cryptocurrency industry.
"With respect to the litigation with the SEC, I want to be very clear, we do think we can win. We expect to win," said Chief Legal Officer Paul Grewal in a post-earnings call.
In choppy extended trading, Coinbase stock recently fell 1.2%. The stock has surged 156% this year as a result of resurgent retail demand and a recovery in the tech industry as a whole.
When investors probed deeper and realised that the guidance was in line with expectations, their initial excitement over the news became more subdued, according to Oppenheimer analyst Owen Lau.
In contrast to predictions of $336.15 million, the cryptocurrency exchange anticipates third-quarter subscription and services income of at least $300 million.
According to Refinitiv statistics, Coinbase recorded sales of $707.9 million in the second quarter, exceeding projections of $663 million.
In the most recent quarter, interest income more than doubled to $201.4 million from $32.5 million.
"In Q2, crypto volatility, which is a key input into our trading business, continued to decline, and it reached multi-year lows," said finance head Alesia Haas.
Trading volume fell to $92 billion in the quarter from $217 billion in the prior year, while the loss shrunk to $97 million from $1.09 billion in the same period in 2022.
(Source:www.reuters.com)
The US Securities and Exchange Commission filed a lawsuit against the business and its rival Binance in June. It was claimed that Coinbase exchanged at least 13 cryptocurrencies that constitute securities without declaring them to the appropriate authorities.
The SEC's move signalled a drastic escalation in the campaign against the cryptocurrency industry.
"With respect to the litigation with the SEC, I want to be very clear, we do think we can win. We expect to win," said Chief Legal Officer Paul Grewal in a post-earnings call.
In choppy extended trading, Coinbase stock recently fell 1.2%. The stock has surged 156% this year as a result of resurgent retail demand and a recovery in the tech industry as a whole.
When investors probed deeper and realised that the guidance was in line with expectations, their initial excitement over the news became more subdued, according to Oppenheimer analyst Owen Lau.
In contrast to predictions of $336.15 million, the cryptocurrency exchange anticipates third-quarter subscription and services income of at least $300 million.
According to Refinitiv statistics, Coinbase recorded sales of $707.9 million in the second quarter, exceeding projections of $663 million.
In the most recent quarter, interest income more than doubled to $201.4 million from $32.5 million.
"In Q2, crypto volatility, which is a key input into our trading business, continued to decline, and it reached multi-year lows," said finance head Alesia Haas.
Trading volume fell to $92 billion in the quarter from $217 billion in the prior year, while the loss shrunk to $97 million from $1.09 billion in the same period in 2022.
(Source:www.reuters.com)
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