World’s largest cryptocurrency exchange coin base (coin) reports quarterly results late Thursday. COIN shares are up 160% year-to-date as bitcoin prices rise following ETF news and lawsuit wins.
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Cryptocurrency prices and related stocks rose in mid-June after a flurry of applications for Bitcoin Exchange Traded Funds (ETFs). black rock (BLK) partnered with Coinbase for the iShares Bitcoin Trust ETF, which was filed with the Securities and Exchange Commission on June 15. The SEC has yet to approve an institutional application for a Spot Bitcoin ETF.
On July 13th, a judge ruled in favor of Ripple Labs in a case against the SEC, giving cryptocurrency companies a major win. The SEC has accused Ripple of offering its XRP token as an unregistered security. The Southern District of New York has ruled that XRP is a security for institutional sales but not for sales to the broader public.
Bitcoin is up nearly 80% so far this year, trading near $29,420 early Wednesday. The world’s largest cryptocurrency has fallen below its 2023 high of $31,809 since July 13, trading less than half of its all-time high of over $67,000 set in November 2021. .
arc investment (Arkuk) CEO Cathie Wood took a profit and steadily unloaded COIN shares throughout July.
crackdown on cryptocurrencies
However, cryptocurrency companies are not completely legally clear. After suing Binance for 13 rule violations, the SEC indicted Coinbase in early June for selling unregistered securities.
In an interview with the Financial Times on Monday, Coinbase CEO Brian Armstrong claimed that the SEC had directed Coinbase to delist all tokens other than Bitcoin before the lawsuit.
“They came back to us and said … we believe any asset other than Bitcoin is a security,” Armstrong told the Financial Times. The SEC denied the accusations in a statement to MarketWatch.
“SEC officials are not asking companies to delist their crypto assets,” an SEC spokesperson told MarketWatch. “During the course of the investigation, staff may share their own views on what conduct may raise questions to the Commission under securities law.”
In a separate lawsuit Monday, a judge ruled that the SEC could sue Terraform Labs for allegedly defrauding investors after last year’s stablecoin crash.
coinbase earnings
Kanaccord raised its price target for COIN shares from ¥70 to $140 early Wednesday before the financial results. Analyst Joseph Buffy said Coinbase remains the “lightning rod” for cryptocurrencies as it gains “physical momentum” in various areas. Vafi believes Coinbase should have some follow-up momentum again in the second quarter.
Analysts expect Coinbase to report a loss of 34 cents per share, an improvement from a loss of $4.98 per share last year. Wall Street expects sales to fall 22.3% to $628 million.
Monthly trading users (MTU), or those who trade at least once a month, are expected to decline by 6.3% to 7.88 million. FactSet predicts he will have 112 million authenticated users in the first quarter, up from 103 million last year to 114.9 million.
coin stock
COIN shares fell 1.6% to 88.95 in the early hours of Wednesday morning before the earnings release. The stock has retreated from the profit-taking zone over the past three weeks after gaining 31% following the July 14 breakout. The stock on Thursday traded near the 21-day exponential moving average.
Coinbase shares are up 160% this year, but are still trading well below their April 2021 all-time high of 429.54.
Follow Harrison Miller on Twitter for stock news and updates. @IBD_ Harrison
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