Coinbase Profit Jumps 66% as Prediction Markets Offset…
By Abdelaziz Fathi
AI summary of the source article
Coinbase posted third-quarter net income of $718.7 million, up 66% year over year, largely driven by a $715 million crypto investment gain. Total revenue dropped 35% to $1.22 billion as prediction markets and subscriptions helped cushion weaker spot trading.
Why it matters
The results reflect Coinbase's efforts to reduce its dependence on spot cryptocurrency trading through its expanding Everything Exchange strategy, which combines digital assets, derivatives, prediction markets and financial services.
Key facts
- Net income reached $718.7 million, though adjusted net income fell to $77.7 million when excluding non-operating gains.
- Prediction markets surpassed $200 million in annualized revenue, combining with derivatives to represent around 25% of Q3 transaction revenue.
- Total revenue declined 35% year over year to $1.22 billion, with transaction revenue falling 44% to $590.2 million.
Source excerpt · FinanceFeeds
Coinbase returned to profitability in the third quarter, reporting net income of $718.7 million, up 66% from $432.6 million a year earlier, as prediction markets and derivatives helped cushion weaker cryptocurrency trading activity. However, a substantial gain on the exchange's investment holdings accounted for most of the reported profit, leaving underlying earnings considerably lower. Total reve…