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Coinbase reported stronger-than-expected third-quarter earnings Thursday, posting $1.9 billion in revenue — up 26% from the previous quarter — as renewed crypto market momentum boosted both trading and stablecoin income.
The San Francisco-based exchange notched $433 million in net profit, or $1.50 per share, surpassing Wall Street expectations of $1.10 per share on $1.8 billion in revenue.
Despite a sequential decline from its record $1.4 billion profit in Q2, Coinbase attributed the drop primarily to non-cash mark-to-market adjustments related to its holdings in Circle and its crypto portfolio.
Shares of Coinbase Global (COIN) jumped more than 4% in after-hours trading to $341 following the results.
The stock is up roughly 33% year-to-date after peaking above $440 in July.
Coinbase also bought almost $300 million in $BTC in Q3. CEO Brian Armstrong confirmed via an X post that remains bullish on bitcoin, stating, “Coinbase is long Bitcoin. Our holding increased by 2,772 $BTC in Q3. And we keep buying more.”
Coinbase trading activity surges due to crypto rally
The results came as Bitcoin hit fresh all-time highs during the quarter, fueling renewed retail and institutional activity after a quieter Q2 marked by macro headwinds.
Coinbase reported $1.0 billion in transaction revenue, up 37% from the prior quarter and 83% from a year earlier, on trading volumes of $295 billion.
Institutional volume rose 22% sequentially to $236 billion, driven in part by the August acquisition of Deribit, the world’s largest crypto options exchange.
Deribit contributed $52 million in revenue during Q3 as Coinbase expanded its derivatives business to include 24/7 perpetual futures trading in the U.S.
Retail activity also rebounded, with consumer trading volume climbing 37% to $59 billion. Coinbase said new listings and decentralized exchange (DEX) integrations helped boost activity among “advanced traders” the company said, while the company’s platform now supports trading for roughly 90% of all crypto assets by market capitalization.
Subscription and services strengthen
Coinbase continues to diversify beyond trading fees, with subscriptions and services revenue climbing 14% to $747 million.
Stablecoin revenue — largely derived from its role in distributing and managing Circle’s $USDC — rose to $355 million, a 43% increase year-over-year. Average $USDC balances held in Coinbase products reached a record $15 billion, supported by rising market capitalization and new institutional reward programs.
Blockchain rewards, including staking income, grew 28% quarter-over-quarter to $185 million, aided by surging prices for Ethereum and Solana.
Meanwhile, custodial fees and interest income both hit new highs as total assets on the platform reached $516 billion.
Building toward the “Everything Exchange”
Coinbase said it is progressing toward its vision of an “Everything Exchange” — a platform uniting spot, derivatives, and onchain services under one roof.
The exchange also highlighted ongoing development of Base, its Ethereum layer-2 network, which has become the leading L2 for stablecoin adoption with $4.6 billion in dollar-pegged assets.
CEO Brian Armstrong said Coinbase is scaling payments by ‘advancing stablecoin adoption’ and building the foundation of the future financial system.
This post Coinbase Beats Q3 Estimates With $1.9B Revenue, Buys $300M in Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.