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Coinbase’s Bitcoin stash grew by 2,772 BTC during the third quarter as it doubled down on its Bitcoin strategy and continued work to become an “Everything Exchange.”
Coinbase’s Bitcoin (BTC) holdings have now reached 14,548 BTC, valued at $1.57 billion, according to its Q3 report on Thursday. Meanwhile, net income increased over fivefold to $432.6 million year-on-year, and total revenue rose to $1.9 billion, up 55% from a year ago.
This was bolstered by transaction revenue, which climbed to $1.05 billion, while subscription revenue — including stablecoin revenue and blockchain rewards — rose 34.3% year-on-year to $746.7 million.
Coinbase said it also continued expanding its business verticals in an effort to become an “Everything Exchange” during the quarter.
“We laid out our vision of an Everything Exchange last quarter, and made progress in Q3 by increasing the number of tradable spot assets, expanding our derivatives offerings, and continuing to lay the groundwork for additional pillars,” Coinbase said in the report.
A major part of Coinbase’s Everything Exchange vision is to advance stablecoin adoption via Circle’s USDC (USDC) stablecoin, in addition to tokenized stocks, prediction markets, and early-stage token sales.
The market responded positively to the Q3 results, with COIN shares up 2.84% in after-hours trading following a near 5.8% decline during regular trading hours on Thursday, according to Google Finance data.
Coinbase continues to chalk up institutional revenue
The $299 million worth of Bitcoin buys show Coinbase’s commitment to accumulating BTC as a long-term asset. It also custodies the cryptocurrency for Wall Street asset managers that offer spot Bitcoin exchange-traded funds.
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Institutional revenue continues to dominate Coinbase trading activity, accounting for 80% of the $295 billion trading volume in Q3, while its assets under custody surpassed $300 billion, setting another all-time high.
Interestingly, Ether’s (ETH) share of Coinbase transaction volume (22%) almost caught up to Bitcoin’s (24%) after recording less than half the share of Bitcoin’s in the previous three quarters.
Adoption on Base continues to unfold
Meanwhile, activity on Ethereum layer 2 Base rose across trading, payments, lending, and social apps in Q3, while Coinbase also launched Flashblocks, a transaction preconfirmation feature that enables 200-millisecond block times.
During the earnings call, Coinbase CEO Brian Armstrong didn’t share any new details on what stage the company is at with potentially launching a Base token.
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