According to a Forbes report, cryptocurrency exchange Coinbase achieved a net income of $433 million in the third quarter of 2023. The company experienced a notable increase in total revenue, growing by 25% to $1.9 billion. During the quarter, Coinbase increased its Bitcoin holdings through weekly purchases, resulting in an addition of $299 million, bringing their total holdings to 14,548 Bitcoin.
As of September 30th, the fair market value of crypto assets held by Coinbase for investment totaled $2.6 billion (with $1.6 billion in Bitcoin), in addition to $1 billion in crypto assets held as collateral. Including crypto assets, Coinbase's total available resources amounted to $15.5 billion. Trading revenue for the quarter was $1 billion, which, while representing a 37% increase from the previous quarter, remains significantly below levels seen at the beginning of the year.
Looking ahead, Coinbase trading revenue reached $1.6 billion in Q4 2024 and $1.3 billion in Q1 2025. This trend suggests that despite rising Bitcoin prices and increased market activity, trading volume has not yet reached the levels necessary for Coinbase to achieve substantial revenue growth. Retail investor trading volume was $59 billion, up 37% from the previous quarter, outperforming the US spot market. Consequently, retail investor trading revenue increased to $844 million, a growth of 30%. Institutional investor trading volume reached $236 billion, up 22% from the previous quarter, with trading revenue at $135 million, a growth of 122%.
47 days after Coinbase acquired Deribit, Deribit contributed $52 million to Coinbase's revenue. Its subscription and service revenue for the quarter reached $747 million, a 14% increase from the previous quarter. Of this, stablecoin revenue increased to $355 million, up 7% from the previous quarter. The average USDC balance held within Coinbase products increased by 9% to $15 billion, while USDC balances held off-platform grew by 12% to $53 billion.
Furthermore, according to a Bloomberg report, Coinbase CEO Brian Armstrong stated on a conference call that Coinbase plans to hold a product showcase on December 17th, where more details about tokenized stocks and prediction markets will be unveiled. The company will continue to focus on acquisition opportunities, particularly in the areas of trading and payments.
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