During the third quarter, Coinbase increased its Bitcoin reserve by 2,772 BTC, reinforcing its commitment to its Bitcoin strategy as it works towards becoming an “Everything Exchange.”
Coinbase’s Bitcoin (BTC) holdings now total 14,548 BTC, valued at $1.57 billion, according to its Q3 report released on Thursday. The company also reported a significant increase in net income, rising over fivefold to $432.6 million year-over-year, with total revenue reaching $1.9 billion, a 55% increase compared to the previous year.
This growth was supported by transaction revenue, which surged to $1.05 billion, while subscription revenue, including stablecoin revenue and blockchain rewards, grew by 34.3% year-over-year to $746.7 million.
Coinbase also highlighted its ongoing efforts to broaden its business verticals, striving to achieve its vision of an “Everything Exchange” throughout the quarter.
“We outlined our vision of an Everything Exchange last quarter, and made strides in Q3 by increasing the number of tradable spot assets, expanding 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 via Circle’s USDC (USDC), in addition to introducing tokenized stocks, prediction markets, and early-stage token sales.
The market reacted favorably to the Q3 results, with COIN shares rising 2.84% in after-hours trading, following a nearly 5.8% dip during regular trading hours, according to Google Finance data.
Coinbase continues to score institutional revenue
The $299 million in Bitcoin purchases demonstrates Coinbase’s dedication to accumulating BTC as a long-term asset. The company also acts as a custodian for cryptocurrency for Wall Street asset managers that offer spot Bitcoin exchange-traded funds.
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Institutional revenue remains the dominant force in Coinbase’s trading activity, representing 80% of the $295 billion trading volume in Q3, while assets under custody surpassed $300 billion, marking yet another all-time high.
Interestingly, Ether’s (ETH) share of Coinbase transaction volume (22%) is closing in on Bitcoin’s (24%), having previously recorded less than half of Bitcoin’s share in the last three quarters.
Adoption on Base continues to progress
Meanwhile, activity on the Ethereum layer 2 Base expanded across trading, payments, lending, and social apps in Q3, with Coinbase launching Flashblocks, a transaction preconfirmation feature enabling 200-millisecond block times.
During the earnings call, Coinbase CEO Brian Armstrong did not provide any new updates regarding the potential launch of a Base token.
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