Coinbase Tops Expectations as Transaction Revenue Hits $1B

Coinbase reported a strong Q3 performance, achieving $1.9 billion in revenue, up 58% year-over-year, driven by increased trading activity and a rebound in cryptocurrency prices. Transaction revenue surpassed expectations, reaching $1 billion, nearly tripling from $365 million compared to the same period last year. This surge in trading volumes, totaling $295 billion, was particularly fueled by retail investors. The company's adjusted EBITDA also rose significantly to $801 million. Coinbase's Layer 2 network, Base, became profitable, benefiting from higher transaction volumes and ETH prices. Subscription and service revenues increased by 14% to $747 million, with stablecoin-related revenue hitting $355 million. Despite these strong results, the company cautioned investors about the volatility inherent in the crypto market while projecting October transaction revenue around $385 million and Q4 subscription revenue between $710 million and $790 million.

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