On Tuesday, August 3, crypto exchange Coinbase (NASDAQ: COIN) announced its second-quarter results beating street expectations despite facing the SEC lawsuit.
The company posted better-than-expected numbers in comparison to the Street estimates. The company exceeded analyst expectations by posting a loss per share of 42 cents, surpassing the predicted loss of 76 cents. Additionally, their adjusted revenue of $708 million was higher than the expected $628 million, as reported by FactSet analysts.
n terms of revenue breakdown, subscription revenue amounted to $335 million, showing a 7% decrease compared to the previous quarter. Transaction revenue, on the other hand, reached $327 million. In the last quarter, subscription revenue was $362 million, and transaction revenue amounted to $375 million.
As of Thursday closing, the Coinbase (NASDAQ: COIN) stock has been trading at $90.75. The COIN stock has seen a 10% retracement over the last two weeks. At the current price levels, the COIN stock is still trading at 170% gains year-to-date. Coinbase’s biggest supporter Cathie Wood’s Ark Invest has been offloading the COIN stock recently after the mammoth rally.
Coinbase Moves to Dismiss the SEC Lawsuit
During the quarterly earnings call, Coinbase CEO Brian Armstrong said that Coinbase remains financiall healthy despite the bear market. during the same call, Coinbase Chief Legal Officer Paul Grewal also expressed confidence of winning the court case against the SEC.
“With respect to the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win,” he said. Grewal also stated that Coinbase would be moving a motion on august 4, to dismiss the SEC lawsuit. “Tomorrow […] We will be moving the court for an order dismissing the case in its entirety.”
Grewal stated that they will argue Coinbase did not list securities on its platform. They also claim that the SEC lacks regulatory authority over crypto exchanges and never indicated to Coinbase any requirement to register when the registration statement was declared effective in April 2021.
“Our goal across not just the litigation, but all of our efforts engaging with the SEC and engaging with the U.S. government as a whole is to achieve regulatory clarity. The reason why we are so focused on pushing for regulatory clarity here in the U.S. is that at present, under the status quo, we have very conflicting messages about what the law provides,” said Grewal.
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