Nearly $2 billion. That’s how much Coinbase raked in during Q3, blowing past Wall Street‘s expectations of $1.8 billion. The crypto exchange’s revenue jumped a whopping 58% year-over-year, sending its stock up 1.5% as investors celebrated the financial beat.
Transaction revenue led the charge, doubling year-over-year to $1 billion. Retail traders came back in droves, with their trading volume climbing 37% quarter-over-quarter. Coinbase reported net income of $433 million for the quarter, highlighting its return to profitability. This success reinforces Coinbase’s position as one of the most beginner-friendly exchanges in the cryptocurrency market. Turns out people still love buying crypto when prices start climbing again. Who knew?
Retail traders flooding back in proves what we’ve always known—rising prices are crypto’s best marketing campaign.
The company’s subscription and services revenue hit $747 million, providing a steady income stream alongside the more volatile trading fees. Stablecoins were particularly lucrative, generating $355 million in revenue as USDC holdings on Coinbase products grew to $15 billion. The company also realized significant gains with their Assets Under Custody reaching an all-time high of $300 billion. Not too shabby for digital dollars.
Coinbase’s Layer 2 blockchain, Base, turned profitable in Q3. Good timing. The network benefited from increased transaction volumes and rising Ethereum prices. The company’s derivatives business also reached all-time highs in market share, boosted by their 24/7 futures trading and the recent Deribit acquisition.
Adjusted EBITDA hit $801 million for the quarter, highlighting Coinbase’s ability to maintain profitability despite the crypto market’s notorious mood swings. The company has managed to expand its product offerings while keeping costs in check. Efficiency matters.
The momentum shows no signs of slowing. October transaction revenue is expected to reach approximately $385 million, suggesting Q4 might be another strong quarter. Coinbase now offers trading for assets representing about 90% of the total crypto market cap, positioning itself as a one-stop shop for crypto traders.
Stablecoin adoption continues to accelerate, with financial institutions and corporate treasuries jumping on board. For a company that was laying people off just a year ago during crypto winter, this turnaround is pretty remarkable. Crypto is dead? Tell that to Coinbase’s accountants.
