Coinbase Reports Strong Q3 Revenue of $1.87 Billion
Coinbase (COIN) posted $1.87 billion in revenue for the third quarter. This is a 26% rise from the previous quarter and almost double compared to last year. The company’s earnings per share (EPS) were $1.44, beating the estimate of $1.04. Trading volume grew to $295 billion, up from $185 billion a year ago.
Growth in Trading and Institutional Activity
Coinbase shared updates on its “Everything Exchange” strategy. The goal is to combine spot and derivatives trading and payments on one platform. The exchange added more tradable spot assets, now covering 90% of the crypto market. It also reached a record market share in US crypto futures and global crypto options after launching US perpetuals and 24/7 futures trading.
Institutional trading volume increased to $236 billion, a 22% rise from last quarter. Institutional transaction revenue jumped 122% to $135 million. This growth was helped by Coinbase’s acquisition of Deribit, which closed on August 14 and added $52 million in revenue.
Stablecoin Payments and Future Outlook
Coinbase reported strong growth in stablecoin payments, especially with USDC. The USDC market cap hit a record $74 billion in Q3. The average USDC held on Coinbase products was $15 billion. More financial institutions and companies are using stablecoins for payments and treasury tasks.
The company is expanding its payments system with new partnerships and crypto rewards through the CB1 Card. With better regulatory clarity and growing interest from institutions, Coinbase expects crypto payments to become a bigger part of the global economy.
After the earnings release, Coinbase’s stock rose 3.6% in after-hours trading, partly recovering earlier losses.
