Coinbase Stock Climbs After Q3 Earnings: Here’s Why

TLDR

• Coinbase stock surged over 4% in after-hours trading to $341 following its third-quarter earnings report.
• The company reported revenue of $1.9 billion, exceeding Wall Street expectations by $100 million.
• Net profit reached $433 million, or $1.50 per share, beating analyst estimates of $1.10 per share.
• Transaction revenue climbed 37% quarter-over-quarter to $1.0 billion on trading volumes of $295 billion.
• Institutional trading volume rose 22% sequentially to $236 billion during the quarter.

Coinbase stock surged over 4% in after-hours trading on Thursday, reaching $341 following the company’s third-quarter earnings report. The cryptocurrency exchange delivered revenue of $1.9 billion, exceeding Wall Street’s expectations by $100 million. Net profit reached $433 million, or $1.50 per share, beating analyst estimates of $1.10 per share.

Coinbase Transaction Revenue Hits $1 Billion Mark

Coinbase reported transaction revenue of $1.0 billion, representing a 37% increase from the previous quarter. Total trading volumes reached $295 billion over the three-month period. This growth came as Bitcoin hit fresh all-time highs, sparking renewed interest from both retail and institutional investors.

Institutional trading volume climbed 22% sequentially to $236 billion during the quarter. The August acquisition of Deribit, the world’s largest crypto options exchange, contributed to this increase. Deribit alone generated $52 million in revenue for Coinbase during Q3.

Retail activity also showed strength, with consumer trading volume rising 37% to $59 billion. The exchange expanded its offerings to support trading for approximately 90% of all crypto assets by market capitalization. New listings and decentralized exchange integrations attracted advanced traders to the platform.

Subscriptions and services revenue reached $747 million, marking a 14% increase from the prior quarter. Stablecoin revenue rose to $355 million, representing a 43% year-over-year gain. Circle’s USDC stablecoin, which Coinbase helps distribute and manage, drove much of this growth.

Average USDC balances in Coinbase products hit a record $15 billion during the quarter. New institutional reward programs and rising market capitalization supported these balances. The company continues to expand its stablecoin operations as part of its payment strategy.

Blockchain rewards, including staking income, grew 28% quarter-over-quarter to $185 million. Rising prices for Ethereum and Solana contributed to this increase. Custodial fees and interest income both reached new highs as total platform assets climbed to $516 billion.

Coinbase Stock Gains 33% Year to Date

CEO Brian Armstrong confirmed via social media that Coinbase purchased almost $300 million in Bitcoin during Q3.

This purchase demonstrates the company’s confidence in the long-term prospects of cryptocurrency.

Coinbase stock has gained roughly 33% year-to-date, though it remains below its July peak of $440. The exchange reported a sequential decline in net profit from the record $1.4 billion in Q2. Non-cash mark-to-market adjustments related to Circle holdings and crypto portfolio valuations caused this decrease.

The company continues building its “Everything Exchange” vision, combining spot, derivatives, and onchain services. Coinbase is developing Base, its Ethereum layer-2 network, which leads the way for L2 networks in stablecoin adoption. Base now hosts $4.6 billion in dollar-pegged assets.

Armstrong emphasized that Coinbase is scaling payments by advancing the adoption of stablecoins. The exchange expanded its derivatives business to include 24/7 perpetual futures trading in the United States. Revenue increased 26% quarter-over-quarter to $1.9 billion, driven by both trading and stablecoin income.

Coinbase stock traded at $341 in after-hours sessions following the earnings announcement. The San Francisco-based exchange serves both retail and institutional clients across multiple product lines. Total trading volumes and platform assets both reached multi-quarter highs during the September period.

The post Coinbase Stock Climbs After Q3 Earnings: Here’s Why appeared first on CoinCentral.