Coinbase Soars: Q3 Revenue Hits $1.9 Billion with Stunning 58% Year-Over-Year Growth
Coinbase rockets past expectations as crypto winter thaws
The Revenue Engine
That $1.9 billion figure isn't just impressive—it's a declaration that traditional finance's skepticism about crypto viability is looking increasingly outdated. While Wall Street analysts were busy adjusting their spreadsheets, Coinbase was quietly building revenue momentum that would make even the most established financial institutions take notice.
The Growth Trajectory
Fifty-eight percent year-over-year growth in any sector turns heads. In the volatile world of cryptocurrency exchanges? It's practically a middle finger to the naysayers who predicted the industry's decline. The numbers don't lie—while traditional finance was playing it safe, crypto was busy printing results that would make your average bank CEO reconsider their retirement timeline.
Market Implications
This performance signals more than just one company's success—it's a barometer for the entire digital asset ecosystem. When the leading regulated exchange posts numbers like these, it suggests institutional money isn't just dipping toes anymore; it's diving in headfirst. The crypto skeptics club might need to find new talking points—their old ones are looking pretty worn out against this kind of financial performance.
Because nothing says 'I told you so' quite like nearly $2 billion in quarterly revenue while traditional finance is still figuring out blockchain basics.
Coinbase buys 2,772 BTC, leans into Base growth
Coinbase also increased its Bitcoin holdings by 2,772 BTC during Q3. Brian Armstrong, the company’s CEO, confirmed the purchase Thursday, but he didn’t say when the BTC was bought. But it marks one of the largest single-quarter additions to Coinbase’s corporate treasury.
Armstrong and his team have been working to reduce Coinbase’s dependence on trading fees. Q3 earnings showed that the MOVE is working. The company pulled in $355 million from stablecoin reserves, up 43% from $247 million in Q3 2024.
This revenue mostly came from interest earned on Circle’s USDC, which Coinbase helps manage. The exchange also generated $185 million from blockchain rewards, including staking payouts to customers.
Coinbase has been doubling down on Base, its Ethereum layer-2 network launched in 2023. Back in September, the company said it’s considering creating a Base token, but hasn’t committed to a timeline or design.
Despite the uncertainty, JPMorgan analysts projected the token could generate $12 billion in value for Coinbase. In that same note, JPMorgan bumped its price target to $404, with a possible Base token market cap of $12 billion to $34 billion.
Coinbase said in its earnings statement that “Base revenue growth was driven by higher average ETH price and a higher number of transactions.” Those transactions are stacking up.
Among all layer-2 chains, Base now leads in stablecoin usage, with over $4.6 billion in dollar-pegged tokens, according to DeFiLlama.
Coinbase said earlier this month that it has applied for a national bank trust charter. That move puts it alongside companies like Circle, Paxos, and Ripple, all of which are developing banking frameworks for their stablecoin operations.
If approved, Coinbase would gain access to more banking privileges and expand its regulated footprint in the U.S.
Armstrong’s team is also moving into tokenized real-world assets. Coinbase announced this summer that it’s working on bringing tokenized products to customers, following similar moves by Robinhood and Kraken.
The company hasn’t disclosed which assets will be included, or when this new service will go live. For now.
Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
