Coinbase Beats Q3 Forecasts as Transaction Revenue Jumps to $1 Billion

Coinbase reported $1.9 billion in revenue for Q3, a 26% increase from the previous quarter, surpassing Wall Street expectations of $1.8 billion. The company's earnings per share were $1.50, exceeding forecasts by analysts who predicted $1.10 per share. Coinbase's net income for the quarter was $433 million, compared to $1.4 billion in the previous quarter but significantly up from $75 million a year ago. Transaction revenue reached $1 billion, a notable 37% hike from $764 million in the prior quarter and an increase from $573 million a year prior. The rise in revenue is attributed to a bullish crypto market with notable price increases. Coinbase also announced earnings from stablecoins, amounting to $355 million, demonstrating a 43% increase year-over-year. Additionally, it is exploring a token launch for its Ethereum layer-2 network, Base, which could significantly enhance its valuation, with estimations suggesting a market cap of $12 to $34 billion for the token. Coinbase’s stock has appreciated by about 33% year-to-date, reflecting growing investor confidence amid its expanding services.

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