PANews reported on October 31st that, according to Forbes, cryptocurrency exchange Coinbase reported net revenue of $433 million in the third quarter. Total revenue increased 25% quarter-over-quarter to $1.9 billion. During the quarter, Coinbase increased its Bitcoin holdings by $299 million through weekly purchases, currently holding 14,548 Bitcoins. As of September 30th, its fair market value of investable crypto assets was $2.6 billion (of which $1.6 billion was Bitcoin), with an additional $1 billion in crypto assets held as collateral. Including crypto assets, Coinbase's total available resources reached $15.5 billion. Trading revenue for the quarter was $1 billion, a 37% increase from the previous quarter, but still significantly lower than at the beginning of the year. Coinbase's trading revenue is projected to reach $1.6 billion in the fourth quarter of 2024 and $1.3 billion in the first quarter of 2025. This trend indicates that despite rising Bitcoin prices and increased market activity, trading volume has not yet reached the level needed for Coinbase to significantly increase its revenue.
Individual investor trading volume reached $59 billion, a 37% increase quarter-over-quarter, outperforming the US spot market. Individual investor trading revenue subsequently rose to $844 million, a 30% increase. Institutional investor trading volume reached $236 billion, a 22% increase quarter-over-quarter, with trading revenue of $135 million, a 122% increase. Forty-seven days after Coinbase acquired Deribit, Deribit contributed $52 million in revenue to Coinbase. Its subscription and service revenue reached $747 million in the quarter, a 14% increase quarter-over-quarter. Stablecoin revenue increased to $355 million, a 7% increase quarter-over-quarter. The average USDC balance held in Coinbase products increased by 9% to $15 billion, while the USDC balance outside the platform increased by 12% to $53 billion.
In addition, according to Bloomberg, Coinbase CEO Brian Armstrong said in a conference call that Coinbase plans to hold a product showcase on December 17, at which time it will announce more details about tokenized stocks and prediction markets. The company will continue to look for M&A opportunities, especially in the trading and payments sectors.
