{"id":322046,"date":"2021-08-11T21:48:05","date_gmt":"2021-08-11T18:48:05","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation\/"},"modified":"2021-08-11T21:48:05","modified_gmt":"2021-08-11T18:48:05","slug":"coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation\/","title":{"rendered":"# Coinbase beats earnings estimates as analysts say regulation will \u2018stifle\u2019 innovation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37a5b020daa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37a5b020daa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation\/#Strong_Q2_earnings_for_Coinbase\" >Strong Q2 earnings for Coinbase\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation\/#Analysts_still_express_caution\" >Analysts still express caution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/coinbase-beats-earnings-estimates-as-analysts-say-regulation-will-stifle-innovation\/#COINs_technical_outlook_is_positive\" >COIN&#8217;s technical outlook is positive<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Coinbase beats earnings estimates as analysts say regulation will \u2018stifle\u2019 innovation <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Coinbase Global (NASDAQ: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.google.com\/finance\/quote\/COIN:NASDAQ\">COIN<\/a>) rebounded during the early trading hours on Aug.11 after it beat Wall Street forecasts for sales and revenues in the second quarter.<\/p>\n<p>The cost to purchase one COIN share surged 4.7% to $282.34 at the New York opening bell. Later, bids for the COIN rose to as high as $294 before pulling back to its current price at $279.72.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/50b3d74f-bc10-4964-a88d-9472ea18b099.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Coinbase stock daily chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Strong_Q2_earnings_for_Coinbase\"><\/span>Strong Q2 earnings for Coinbase\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Coinbase Global <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investor.coinbase.com\/financials\/quarterly-results\/default.aspx\">reported better-than-expected earnings<\/a> in the second quarter of 2021and posted net revenue of $2.3 billion. That came to be 27% higher from the previous quarter and 1,042% up on a year-over-year basis. <\/p>\n<p>Meanwhile, Coinbase&#8217;s net income rose from $32 million to $1.6 billion in the same period, surpassing earnings of older and more traditional exchange operators, including the CME Group of Chicago, which earned $510 million and made $1.2 billion in revenue in Q3, and the Intercontinental Exchange, which reported a $1.3 billion in earnings.<\/p>\n<p>The positive Coinbase results <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared as various entities\u00a0continue to accumulate Bitcoin\u00a0and the firm reported that its monthly transaction metric climbed to 8.1 million in Q2 from $6.1 million in Q1. Meanwhile, its trading volume rose to $462 billion from $335 billion in the same period.<\/p>\n<p>In excerpts from the earnings call transcript, Coinbase CEO Brian Armstrong is heard\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investor.coinbase.com\/events-and-presentations\/events\/event-details\/2021\/Second-Quarter-2021-Earnings-Call\/default.aspx\">discussing plans<\/a> to expand Coinbase operations in the future.<\/p>\n<p>Armstrong said:<\/p>\n<blockquote><p>&#8220;We&#8217;re also focusing on international expansion, another form of decentralization, and just listing more and more assets. We want to be the Amazon of assets, list every asset out there in crypto that&#8217;s legal.&#8221;<\/p><\/blockquote>\n<p>In a letter to shareholders, Coinbase shared plans to explore decentralized finance (DeFi), adding that mainstream customers and institutions would soon be using the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> that cuts out traditional inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries from financial services, such as lending and borrowing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Analysts_still_express_caution\"><\/span>Analysts still express caution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the flip side,\u00a0Coinbase warned that\u00a0declining volatility in the cryptocurrency market that could impact its earnings in the year ahead.<\/p>\n<p>The firm stated that its monthly transacting users (MTU)\u2014retail traders that trade on exchanges at least once a month\u2014surged 44% to 8.8 million at the end of Q2. Nevertheless, the net MTU declined in July and August, prompting Coinbase to lower its annual users estimate from 9 million to 8 million.<\/p>\n<p>Declining trading volumes is another metric concerning analysts and the figure turned out to be weaker in July, mostly due to Bitcoin price slumping below $30,000.<\/p>\n<p>According to Wedbush Securities analyst Moshe Katri, COIN&#8217;s primary concerns are &#8220;mostly related to the regulatory environment.&#8221;<\/p>\n<p>Katri is likely referring to the US Senate approving a roughly $1 trillion infrastructure bill, a part of which requires digital asset brokers to report capital gains to the Internal Revenue Service. The bill aims to raise $28 billion in a decade by taxing the cryptocurrency sector but it failed to define who it considers &#8220;brokers.&#8221;<\/p>\n<p>Anne Fauvre, COO of data security firm Oasis Labs, said that the bill is too vague, fearing that it might end up covering even entities that are neither brokers nor hold any personal information of their customers.\u00a0<\/p>\n<p>Fauvre told Cointelegraph, &#8220;Regulation should be seen as a way to create guardrails around industries&#8221; and &#8220;this bill would stifle the next 20 years of innovation in the US as we know it.&#8221;<\/p>\n<p>Adding to these regulati concerns, Coinbase CFO Alesia Haas <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=hoPDY5ynFL0\">told CNBC<\/a> that U.S. regulators and lawmakers need to know that every cryptocurrency is not a security. Armstrong said that Coinbase is investing in a crypto advocacy group called the &#8220;Crypto Council for Innovation&#8221; to ensure &#8220;sensible regulation&#8221; in the US.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"COINs_technical_outlook_is_positive\"><\/span>COIN&#8217;s technical outlook is positive<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Katri <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/news\/coinbase-climb-correlated-volatility-143538329.html\">iterated<\/a> a &#8216;Buy&#8217; rating for the Coinbase stock and suggested a rise to $300 in the next 12 months, which is a 3.03% upside estimate.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/f728bc3e-a07f-4b71-bd22-ddc2c3d3aaf8.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Analyst rating consensus for the Coinbase stock. Source: TipRanks<\/em><\/figcaption><\/figure>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tipranks.com\/stocks\/coin\/forecast\">TipRanks<\/a>, the average analyst consensus for COIN was also a &#8216;Buy&#8217; with a $369.25 price target per share by next year.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The cost to purchase one COIN share surged 4.7% to $282.34 at the New York opening&#8230;<\/p>\n","protected":false},"author":1,"featured_media":322047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvYmJmOTlhOTMtNGEzYi00NjA2LTk4YzUtMTA4YjNhZGI1ZTQyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,74937,74858,74956,74863,74860,74877,75164,78261,117,73785,72332,70359],"class_list":["post-322046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-price","tag-bitcoin-regulation","tag-coinbase","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-decentralized-exchange","tag-price-analysis","tag-tech-analysis","tag-business","tag-markets","tag-nasdaq","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/322046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=322046"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/322046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/322047"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=322046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=322046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=322046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}