- On Tuesday, August 3, despite facing a lawsuit from the SEC, cryptocurrency exchange Coinbase (NASDAQ: COIN) announced its second-quarter results, surpassing expectations.
- Until Thursday’s close, Coinbase shares were trading at $90.75. COIN shares have seen a 10% correction in the past two weeks.
- Coinbase CEO Brian Armstrong, stating that the company’s financial situation is good, said during the quarterly earnings call that Coinbase remains financially healthy despite the bear market.
Coinbase achieved higher-than-expected revenue in the second quarter of the year and announced that it will take action to dismiss the lawsuit filed by the SEC.
Coinbase Announces Second Quarter Earnings
On Tuesday, August 3, despite facing a lawsuit from the SEC, cryptocurrency exchange Coinbase (NASDAQ: COIN) announced its second-quarter results, surpassing expectations. The company reported better results compared to analysts’ estimates.
The company exceeded the estimated loss of 76 cents, reporting a loss of 42 cents per share, surpassing analyst expectations. Additionally, its adjusted revenue of $708 million was higher than the expected $628 million.
In terms of revenue details, subscription revenue reached $335 million, showing a 7% decrease compared to the previous quarter. On the other hand, transaction revenue reached $327 million. In the previous quarter, subscription revenue was $362 million and transaction revenue was $375 million.
Until Thursday’s close, Coinbase shares were trading at $90.75. COIN shares have seen a 10% correction in the past two weeks. At current price levels, COIN shares are still trading with a 170% gain since the beginning of the year. Cathie Wood’s Ark Invest, the biggest supporter of Coinbase, recently sold its COIN shares after the massive rally.
Coinbase Trying to Dismiss SEC Lawsuit
Coinbase CEO Brian Armstrong, stating that the company’s financial situation is good, said during the quarterly earnings call that Coinbase remains financially healthy despite the bear market. During the same call, Coinbase Chief Legal Officer Paul Grewal expressed confidence in winning the lawsuit against the SEC. Paul Grewal said the following;
“Regarding the lawsuit, I want to be very clear. We believe we can win. We expect to win.”
Grewal stated that they will make a move to completely dismiss Coinbase’s SEC lawsuit on August 4; “Tomorrow […] we will request an order dismissing the entire lawsuit from the court.”
Grewal stated that they will argue that Coinbase does not list securities on its platform and that the SEC does not have regulatory authority over cryptocurrency exchanges, and they will claim that the registration statement did not require Coinbase to register when it was activated in April 2021. Grewal also said the following;
“Our efforts to establish a relationship with the SEC and the U.S. government as a whole, not just in the context of the lawsuit, are aimed at obtaining regulatory clarity. The reason we are so focused on pushing for regulatory clarity in the U.S. is because under the current circumstances, we receive very conflicting messages about what the laws provide.”
