TLDR:
- Coinbase’s Q3 profit jumped to $433M as crypto market swings pushed trading revenue to over $1B.
- Stablecoin income rose to $354.7M, driven by corporate adoption and favorable policy support.
- Coinbase acquired Deribit to strengthen its position in crypto derivatives trading markets.
- The company added $299M in Bitcoin during Q3, expanding its holdings to 14,548 BTC.
Coinbase has once again shown that volatility pays. The exchange recorded its strongest quarter in over a year as trading activity surged. Institutional demand and stablecoin revenue helped boost profits far beyond expectations.
Bitcoin’s price swings fueled trading, and policy optimism added momentum. Analysts say Coinbase is now operating from a position of strength.
Trading Revenue Drives Coinbase’s Crypto Profit Boom
According to reports Coinbase posted a net income of $432.6 million for the third quarter, or $1.50 per share, compared to $75.5 million last year. The company’s transaction revenue reached $1.05 billion, nearly doubling from $573 million in the same period a year earlier.
Crypto volatility played a major role in this growth. July’s market rally, spurred by pro-crypto policies from President Trump’s administration, drove volumes higher. Bitcoin hit new peaks, sparking trading activity that benefited exchanges like Coinbase.
When weak economic data hit in August, the following selloff also fueled trading as investors repositioned.
According to Wu Blockchain, Coinbase also added $299 million worth of Bitcoin to its balance sheet through weekly purchases, now holding 14,548 BTC. Analysts view this accumulation as part of the company’s broader effort to expand its digital footprint while maintaining liquidity strength.
Coinbase shares rose more than 3% after the earnings release, reflecting investor confidence in the exchange’s ability to profit in both bullish and choppy markets.
Stablecoin and Subscription Revenue Strengthen Growth Outlook
Coinbase’s subscription and services revenue climbed 34% to $746.7 million in Q3, supported by strong stablecoin performance. Stablecoin-related income reached $354.7 million, up from $246.9 million a year earlier, signaling growing demand from corporates and financial institutions.
The exchange credited policy tailwinds and broader adoption trends for the surge.
In a shareholder letter, it said that stablecoin payments are accelerating as businesses use them for treasury and settlement operations. This growth also ties to recent U.S. policy frameworks such as the GENIUS Act, aimed at regulating and promoting stablecoin use.
Coinbase completed its acquisition of Deribit during the quarter, expanding into derivatives trading. The move, according to analysts at Third Bridge, helps Coinbase close a long-standing gap in its product lineup.
Deribit dominates crypto options trading, giving Coinbase a foothold in a growing market.
CEO Brian Armstrong said Coinbase is working toward becoming an “everything app” for finance. The company plans to introduce tokenized stocks and prediction markets while continuing to acquire key businesses that fit its ecosystem vision.
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