Coinbase's Q3 Earnings Report Exceeds Expectations, Net Profit Reaches $432.6 Million, Trading-Related Revenue Sees a 37% Quarter-over-Quarter Growth
BlockBeats News, October 31st, according to CNBC, Coinbase's Q3 financial report performance exceeded expectations, with Q3 net profit increasing from $75.5 million (28 cents per share) in the same period last year to $4.326 billion ($1.50 per share). Earnings per share surpassed the analyst consensus expectation of $1.10 from the London Stock Exchange Group.
Revenue increased from $1.21 billion in the same period last year to $1.87 billion, surpassing analysts' expectation of $18 billion. Trading-related revenue rose to $10 billion, a 37% increase from the second quarter, with retail trading revenue at $844 million, a 30% increase quarter-on-quarter. Additionally, subscription and services revenue reached $747 million.
The platform's consumer trading volume surged to $590 billion, a 37% increase from the previous quarter. Retail trading revenue reached $844 million, a 30% increase quarter-on-quarter. On the institutional side, Coinbase's third-quarter trading revenue reached $135 million, a 122% increase from the previous quarter; and third-quarter institutional trading volume grew 22% quarter-on-quarter, reaching $236 billion.
Stablecoin revenue reached $355 million, a 7% year-on-year increase. Coinbase holds $15 billion worth of USDC in its products, a 9% year-on-year increase.
Derviatives (Deribit+Coinbase) trading volume exceeded $840 billion, marking the highest level in U.S. cryptocurrency derivatives trading volume and market share.
Acquired 2,772 bitcoins, equivalent to $299 million.
CEO Armstrong stated that as part of its strategy, Coinbase is integrating prediction markets, tokenized stocks, and other products into its platform. As the scale of various digital asset markets continues to expand, and with competition intensifying under the drive of regulatory tailwinds, expanding the scope of its business is crucial to Coinbase's future growth.
Following the news of the better-than-expected financial report, Coinbase (COIN) stock price rose 3.5% after hours.
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