Coinbase’s $719 million profit reveals a company caught between two crypto economies
Summary
Coinbase reported a $719 million third-quarter net profit, reversing a $359 million loss in Q2, although revenue was flat quarter over quarter and down 35% year over year as spot trading weakened. Crypto investment gains of about $715 million drove much of the profit; adjusted net income was $78 million. Prediction markets surpassed $200 million in annualized revenue and helped diversify transaction income, while subscriptions and services generated $570 million, or 49% of net revenue. USDC balances rose 49% year over year to $22 billion, but lower interest rates and higher rewards reduced stablecoin economics. Coinbase also increased its Bitcoin and Ethereum holdings.
