By Hannah Lang
(Reuters) – Cryptocurrency exchange Coinbase on Thursday beat estimates for third-quarter revenue, but saw trading volumes decline for the second quarter in a row.
Trading volumes at the crypto exchange in the third quarter came in at $11 billion, compared with $26 billion a year earlier, mirroring a similar fall in the prior quarter ended June 30.
Total revenue in the three months ended Sept. 30 was $674.1 million, compared with analysts’ estimate of $653.19 million, according to LSEG data.
Investor sentiment toward cryptocurrencies has been lukewarm this year after a string of high-profile collapses in 2022 led to outflows of more than a trillion dollars from the sector.
Shares of the crypto exchange fell 2% in extended trading after results.
The decline in trading volumes comes as Coinbase continues to battle the U.S. Securities and Exchange Commission (SEC), which sued it and rival Binance in June, alleging it traded at least 13 crypto assets that are securities without registering them with the regulator. Both have denied the allegations.
In its previous earnings call, Coinbase Chief Legal Officer Paul Grewal said he expects Coinbase to prevail in the case.
(Reporting by Hannah Lang in Washington; editing by Jonathan Oatis)
