Coinbase said its revenue nearly doubled to $1.21 billion in Q3 2024 from $674.15 million last year, driven by increased trading volumes and transaction fees.
Coinbase has reported a Q3 net income of $75.46 million (28 cents per share), a sharp turnaround from a $2.27 million loss (1 cent per share) a year ago.
Volatile crypto markets led to a rise in trading volumes, reaching $185 billion in Q3, up from $76 billion a year earlier. The volatility was partly fueled by new SEC-approved bitcoin and ether ETFs.
Coinbase’s transaction revenue nearly doubled, totaling $572.5 million for the quarter.
Revenue from subscriptions and services, which include non-trading businesses, rose to $556.1 million, up from $334.4 million in Q3 2022.
Stablecoin revenue was $247 million, up 3 percent Q/Q. The primary drivers of growth were higher average USDC on-platform balances — which grew 7 percent Q/Q to $6.6 billion — and higher average USDC market capitalization — which grew 5 percent Q/Q.
Blockchain rewards revenue was $155 million, down 16 percent Q/Q. The primary driver of the Q/Q decline was lower average crypto asset prices — notably ETH and SOL.
Q3 consumer transaction revenue was $483 million, down 27 percent Q/Q. Q3 consumer trading volume was $34 billion, down 8 percent Q/Q.
Q3 institutional transaction revenue was $55 million, down 13 percent Q/Q. Q3 institutional spot trading volume was $151 billion, down 20 percent Q/Q, largely driven by lower volume on our spot exchange.
Quarterly custodial fees jumped to $31.7 million from $15.8 million last year, benefiting from inflows from spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust.
Technology & development expenses grew 4 percent Q/Q to $377 million, and general & administrative expenses grew 3 percent Q/Q to $330 million.
Ahead of the 2024 elections, Coinbase highlighted ongoing efforts for regulatory clarity, noting increased support from politicians with pro-crypto positions, including statements from both presidential candidates.
