Coinbase Reports Q3 Earnings of $406 Million

Coinbase, the largest US-based cryptocurrency exchange by trading volume, reported Q3 earnings of $406 million today. This represents a 500% increase over Q3 2020, but a 23% drop from its record April-June earnings.

Trading Volume Decline

Trading volume across the crypto spot market declined quarter-over-quarter in Q3, according to Square, which permits Bitcoin buying and trading via its Cash App. This contributed to a 78% drop in crypto revenue for the firm.

Year-over-Year Comparison

Zooming out to year-over-year earnings, all three companies are riding crypto as a long-term strategy rather than a short-term fix. Coinbase, in particular, is rapidly expanding its listings, including Bitcoin and Ethereum, which no longer control a majority of trading volume or transaction revenue.

Asset Mix

The crypto exchange has worked to add new assets, expanding rapidly from its core five from three years ago. The most notable additions have been Dogecoin and Shiba Inu, which perked up the company’s coffers when they were added at the beginning of June and the end of last quarter, respectively.

CFO’s Comments

Coinbase CFO Alesia Haas