Coinbase posts strong Q3 profit as trading, stablecoins surge

Coinbase reported a strong third quarter on Oct. 30, delivering profit and revenue that topped analyst expectations as a surge in trading activity and growth in stablecoin and subscription businesses boosted results. The largest U.S. cryptocurrency exchange said net income for the quarter ended Sept. 30 was about $433 million, or $1.50 per share, compared with $75.5 million, or $0.28 per share, in the year-ago period. Revenue rose to roughly $1.8 billion.

Transaction revenue, driven by spot and derivatives trading, climbed to about $1.05 billion, nearly double the $572.5 million recorded in the third quarter last year. Adjusted EBITDA came in at approximately $801 million, ahead of expectations. The company said heightened market volatility during the quarter materially increased trading volumes, producing outsized transaction fees and lifting overall results.

Coinbase said trading activity surged in July amid a market rally and institutional inflows, then rose again during a selloff in August and September as investors repositioned portfolios. Analysts and company statements pointed to recent policy developments and renewed institutional interest as contributors to the July...