This Year Coinbase, the cryptocurrency exchange, is experiencing a period of success. In the second quarter of this year, its revenues significantly surpassed investors’ expectations. Higher interest rates played a substantial role in this achievement. The Coinbase leadership also expressed confidence in prevailing over the dispute with the U.S. Securities and Exchange Commission (SEC). Since the beginning of this year, Coinbase’s stocks have already strengthened by over 160%.

Coinbase’s Stocks Significantly Outperform This Year’s Tech Market Trends

While the Nasdaq index of the New York Stock Exchange has strengthened by around 30% since the beginning of the year, Coinbase’s shares have appreciated by an impressive 162%.

The most substantial surge in their value has occurred over the past two months, during which the shares rebounded from the $50 level to nearly $90.

This remarkable performance can largely be attributed to favorable financial news from Coinbase. Its revenues for the second quarter of this year greatly exceeded analysts’ estimates, reaching over $700 million, surpassing expectations by approximately $40 million.

In addition to this, relatively optimistic expectations are tied to the dispute with the U.S. Securities and Exchange Commission (SEC).

The American regulator accused both Coinbase and the competitive cryptocurrency exchange Binance of unlawfully trading at least thirteen types of cryptocurrency assets.

According to the SEC, Coinbase and Binance engaged in trading these assets without proper registration. Coinbase firmly denies such allegations.

“With all due respect to the Commission, I really do believe that we can win. We expect to win,” stated Paul Grewal, the Chief Legal Officer of Coinbase, during the announcement of quarterly results.

Source: Saini – Reuters