Coinbase increased its Bitcoin holdings by 2,772 BTC in the third quarter as part of its enhanced Bitcoin strategy, working towards becoming an “Everything Exchange.”
Now, Coinbase’s Bitcoin (BTC) reserves stand at 14,548 BTC, valued at $1.57 billion, according to the Q3 report released on Thursday. Additionally, net income soared more than fivefold to $432.6 million year-on-year, with total revenue climbing to $1.9 billion, a 55% increase from the previous year.
This growth was largely driven by transaction revenue, which reached $1.05 billion, while subscription revenue—including stablecoin revenue and blockchain rewards—rose by 34.3% year-on-year to $746.7 million.
Coinbase also focused on expanding its business verticals in Q3 to realize its vision of an “Everything Exchange.”
“We outlined our vision for an Everything Exchange last quarter and made strides in Q3 by increasing the number of tradable spot assets, enhancing our derivatives offerings, and laying the foundation for additional pillars,” Coinbase stated in the report.
A key element of Coinbase’s Everything Exchange vision is to promote stablecoin adoption through Circle’s USDC (USDC), alongside tokenized stocks, prediction markets, and early-stage token sales.
The market reacted positively to the Q3 results, with COIN shares rising 2.84% in after-hours trading, following a nearly 5.8% dip during regular trading hours on Thursday, as per Google Finance data.
Coinbase keeps building institutional revenue
The $299 million in Bitcoin purchases reflects Coinbase’s dedication to accumulating BTC as a long-term asset and providing custody for Wall Street asset managers who offer spot Bitcoin exchange-traded funds.
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Institutional revenue remains the bulk of Coinbase’s trading activity, making up 80% of the $295 billion trading volume in Q3, while assets under custody exceeded $300 billion, reaching a new all-time high.
Notably, Ether’s (ETH) share of Coinbase’s transaction volume (22%) is closing in on Bitcoin’s (24%), after having less than half of Bitcoin’s share in the prior three quarters.
Adoption on Base progresses
Meanwhile, activity on the Ethereum layer 2 Base saw increases in trading, payments, lending, and social applications in Q3, as Coinbase launched Flashblocks, a transaction preconfirmation feature that allows for 200-millisecond block times.
During the earnings call, Coinbase CEO Brian Armstrong did not provide new updates regarding the potential launch of a Base token.
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