Coinbase's Q3 2023 results demonstrate significant growth across several key metrics. The company substantially increased its Bitcoin reserves, achieved a fivefold rise in net income, and reported growth in both total revenue and transaction revenue.
Coinbase augmented its Bitcoin (BTC) holdings by 2,772 BTC during the third quarter, bringing its total holdings to 14,548 BTC, valued at approximately $1.57 billion. This underscores the company's commitment to Bitcoin as a long-term asset.
Net income saw a remarkable increase, reaching $432.6 million, a more than fivefold increase year-over-year. Total revenue also rose, climbing 55% to $1.9 billion. Transaction revenue significantly contributed to this growth, reaching $1.05 billion, while subscription revenue increased by 34.3% to $746.7 million.
Coinbase continues to expand its business verticals to become an 'Everything Exchange,' increasing the number of tradable spot assets, expanding its derivatives offerings, and laying the groundwork for additional pillars. This expansion includes advancing stablecoin adoption via USDC, tokenized stocks, prediction markets, and early-stage token sales.
Institutional revenue remains a dominant force in Coinbase's trading activity, accounting for 80% of the $295 billion trading volume in Q3. Assets under custody surpassed $300 billion, setting a new all-time high. Interestingly, Ether's (ETH) share of Coinbase transaction volume (22%) nearly caught up to Bitcoin's (24%).
Activity on Ethereum layer 2 Base experienced growth across trading, payments, lending, and social applications in Q3. Coinbase also launched Flashblocks, a transaction preconfirmation feature enabling 200-millisecond block times.
Coinbase's Q3 results demonstrate strong performance and continued growth, with a clear focus on expanding services and solidifying its position in the cryptocurrency market.
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