Coinbase had a monster Q3, raking in $432.6 million in net income on $1.9 billion in revenue. But what’s really interesting is they added 2,772 Bitcoin to their holdings during the quarter, bringing their total stash to 14,548 BTC worth about $1.57 billion.
The company’s net income jumped over five times compared to last year, with transaction revenue hitting $1.05 billion. Their subscription revenue, which includes stablecoin earnings and blockchain rewards, climbed 34% to $746.7 million.
Coinbase is doubling down on what they’re calling their “Everything Exchange” vision, basically becoming a one-stop shop for all things crypto. That means expanding tradable assets, growing their derivatives offerings, and building out stablecoins, tokenized stocks, prediction markets, and early token sales.
Institutional clients are absolutely dominating their business now, accounting for 80% of the $295 billion in trading volume during Q3. Assets under custody passed $300 billion for the first time ever.
Something worth noting, Ethereum’s share of transaction volume hit 22%, almost catching up to Bitcoin’s 24%. That’s a huge jump since ETH was doing less than half of Bitcoin’s volume in previous quarters.
Their Ethereum layer 2 network, Base, also saw major growth across trading, payments, lending, and social apps. They even launched Flashblocks, which enables insanely fast 200-millisecond block times.
COIN shares popped 2.84% in after-hours trading after the earnings report dropped.
Conclusion
Coinbase added $300 million in Bitcoin holdings while posting $432.6 million in net income on $1.9 billion in revenue, with institutional clients driving 80% of trading volume in Q3.
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