Morning Minute: Coinbase Smashes Q3 Earnings Despite Sideways Crypto Market

Coinbase reported a strong performance in Q3 with revenues of $1.9 billion, surpassing expectations by approximately $200 million and representing a 55% year-over-year increase. The company's net income soared to $433 million, a staggering 477% jump from the previous year, and transaction revenue reached over $1 billion, reflecting an 83% increase. Monthly transacting users rose to 12.6 million, reversing the previous quarter's decline, and Coinbase's Layer-2 chain, Base Layer, achieved positive adjusted EBITDA for the first time. Looking ahead, Coinbase projects Q4 revenues between $2.2 billion and $2.3 billion, anticipating continued growth driven by elevated trading volumes and asset price movements. Factors contributing to this success include heightened market volatility, increased institutional interest, and the growing acceptance of stablecoins for payments. As Coinbase continues to strengthen its position in the market, it is well-positioned to attract investments away from traditional crypto assets, resulting in a possible shift towards its stock offering.

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