Morning Minute: Coinbase Smashes Q3 Earnings Despite Sideways Crypto Market

Coinbase reported impressive Q3 results, achieving $1.9 billion in revenue, a significant 55% year-over-year increase, and exceeding expectations by $200 million. The company's net income reached $433 million, marking a 477% year-over-year growth, while transaction revenue surged 83% to over $1 billion. Monthly transacting users (MTUs) rose to 12.6 million, reversing a prior decline. Coinbase's Layer-2 chain, Base Layer, also reported positive adjusted EBITDA for the first time. The exchange projects Q4 revenues between $2.2 billion and $2.3 billion, driven by strong daily trading volumes and a favorable crypto environment. Coinbase continues to benefit from heightened volatility, institutional interest, and an increasing adoption of stablecoins. The firm also acquired around $300 million of Bitcoin during the quarter. These developments position Coinbase favorably amid growing competition in the crypto space, as they expand their offerings in crypto-as-a-service and attract institutional clients.

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