Coinbase posts strong Q3 growth following positive earnings report

Coinbase (COIN) delivered a strong performance in Q3, posting gains in both trading activity and transaction revenue as it advanced its long-term vision of becoming an “Everything Exchange.”

Coinbase revenue climbed to $1.87 billion in Q3 as trading activity surged

Crypto exchange Coinbase reported a revenue of $1.87 billion in Q3, marking a 26% increase from the previous quarter and nearly double year-over-year growth, according to its earnings report on Thursday.

The firm noted that earnings per share (EPS) came in at $1.44 far above estimates of $1.04. Trading volumes climbed to $295 billion, up from $185 billion in the previous year.

In its shareholder update, Coinbase highlighted progress toward its Everything Exchange strategy, which aims to unify spot and derivatives trading and payments under one platform. The company said it expanded its list of tradable spot assets, covering 90% of the total crypto market.

It also reported a record market share in US crypto futures and global crypto options trading following the launch of US perpetuals, 24/7 futures trading, and the completion of its Deribit acquisition.

Institutional activity also strengthened in the third quarter, with trading volume rising to $236 billion, a 22% increase from the previous quarter. Institutional transaction revenue reached $135 million, up 122% quarter-over-quarter, driven largely by the Deribit acquisition, which closed on August 14 and contributed $52 million in revenue.

Coinbase also noted growing momentum in stablecoin payments, driven by rising adoption of USDC, which hit a record high market capitalization of $74 billion in Q3.

The average amount of USDC held across Coinbase products reached $15 billion, as financial institutions and corporations increasingly used the stablecoin for payments and treasury management.

The company said it is scaling its payments infrastructure through new partnerships and crypto rewards via the CB1 Card.

With regulatory clarity improving and institutional interest growing, Coinbase said it sees crypto rails powering a larger share of the global economy in the coming years.

Following the earnings report, Coinbase stock jumped 3.6% after the market closed on Thursday, partly offsetting losses recorded earlier in the day.