In Brief:
- Crypto exchange Coinbase announced its Q3 earnings.
- Trading volume of $327B and net revenue of $1.31B were reported.
- The company’s profits fell by 75% from the previous quarter to $406 million.
The leading cryptocurrency exchange, Coinbase, announced its earnings for the third quarter.
According to the report, net revenue was $1.31 billion for the quarter, down from $2.27 billion in the previous quarter.
For the period, trade volumes were $234 billion (institutional) and $93 billion (retail), for a total of $327 billion. Trading volume fell to $327B from $462B in Q2.
Coinbase reported a decrease in monthly transacting users from the previous quarter, dropping to 7.4 million from 8.8 million in the second quarter. The figure was up from 6.1 million the previous year.
Coinbase reported a net profit of $406 million, or $1.62 per share, an increase of nearly 400% over the previous year.
According to the shareholder letter, adjusted EBITDA was $618 million, compared to $1.15 billion in the previous quarter.
According to the report, bitcoin accounted for 19% of trading volume, while Ethereum accounted for 22%. The remaining 59 percent was derived from other crypto assets, up from 50 percent in the second quarter.
The platform’s assets increased to $255 billion from $180 billion. The majority of that comes from institutional investors, with the remainder coming from retail investors.
Coinbase stated that “We believe that retail MTUs and total trading volume will be higher in Q4 as compared to Q3.”
Coinbase reported $1.9 billion in transaction revenue in the second quarter, with a profit of slightly more than $1.6 billion, nearly doubling that of Q1.
