🔴 Exclusive webinar: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Coinbase posts third-quarter profit on trading strength

Published 10/30/2024, 04:19 PM
Updated 10/30/2024, 07:01 PM
© Reuters. FILE PHOTO: Smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
COIN
-

By Pritam Biswas

(Reuters) - Coinbase (NASDAQ:COIN) Global posted a third-quarter profit on Wednesday, helped by strong trading volumes at the exchange as cryptocurrency increasingly becomes a part of the mainstream investment industry following a string of regulatory clearances.

Crypto markets have been volatile this year, with some of the key assets gaining after the U.S. Securities and Exchange Commission approved an exchange-traded fund to track the spot price of bitcoin and ether, only to lose steam later on economic uncertainties.

The volatility in the asset class has helped third-quarter trading volumes grow to $185 billion from $76 billion at the largest cryptocurrency exchange in the world, giving a boost to transaction fees.

In the last few weeks, sentiment towards the industry has shifted in lockstep with the odds of a Republican win in the presidential election, as Donald Trump has positioned himself as the pro-bitcoin candidate.

"The upcoming 2024 elections are the next major milestone in our ongoing work to drive regulatory clarity for crypto," the company said in a shareholder letter.

"Both presidential candidates are now courting the crypto voter in their statements. Over 350 politicians running for federal office have now adopted pro crypto stances," Coinbase CEO Brian Armstrong said on a conference call.

Coinbase's total transaction revenue nearly doubled to $572.5 million in the third quarter, helping the exchange post total revenue of $1.21 billion, up from $674.15 million a year earlier.

Revenue from Coinbase's subscription and services unit, which houses businesses outside of trading, rose to $556.1 million in the quarter from $334.4 million a year earlier.

Quarterly custodial fee revenue climbed to $31.7 million from $15.8 million last year, benefiting from inflows tied to spot bitcoin ETFs.

© Reuters. FILE PHOTO: Smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Coinbase is the custodian for several of the spot bitcoin ETFs, including BlackRock (NYSE:BLK)'s iShares Bitcoin Trust.

Net income attributable to shareholders came in at $75.46 million, or 28 cents per share, for the three months ended Sept. 30, compared with a loss of $2.27 million, or 1 cent per share, a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.