Coinbase Q3 Revenue Dips as Trading Volume Slows, Share Buyback Announced
Despite declines, Coinbase remains profitable and announces stock repurchase.

Coinbase’s third-quarter earnings report revealed a 17% dip in revenue as trading volumes decreased, reflecting a challenging market for the popular cryptocurrency exchange. The company’s revenue fell to $1.2 billion, down from $1.45 billion in the previous quarter, missing analyst expectations of $1.26 billion, according to FactSet. Despite the decline, Coinbase posted a fourth consecutive quarter of profitability, with net income of $75 million.
This drop in revenue reflects a broader pullback in cryptocurrency market activity over the summer months. Trading volumes, which are a primary revenue source for Coinbase, decreased from $226 billion to $185 billion quarter-over-quarter. Retail trading, in particular, saw a notable slowdown, with retail transaction revenue dropping by 27% to $483 million. Institutional trading also declined, albeit less dramatically, with a 13% decrease in revenue from $63 million to $55 million.
In a move that surprised many, Coinbase’s board approved a $1 billion share repurchase program, signaling confidence in the company’s long-term trajectory despite current headwinds. The repurchases will depend on market conditions and other financial factors.
The company’s stock, which had surged earlier this year to $279 when Bitcoin hit new highs, settled at $211 before the Q3 earnings report and dropped slightly to $202 in after-hours trading.
Coinbase’s earnings also underscored the growing importance of its Base network, a layer-2 solution that saw transaction processing volumes rise 55% over the quarter. This network expansion underscores Coinbase’s investment in enhancing on-chain activity and reducing transaction costs for users. Revenue from stablecoins also showed resilience, increasing slightly to $246 million from $240 million, supported by higher USDC holdings on the platform.
Coinbase’s results come amid rising institutional interest in the cryptocurrency sector. MicroStrategy announced a bold new initiative, the “21/21 Plan,” aiming to raise $42 billion over the next three years for further Bitcoin purchases, signaling strong interest in long-term crypto investments.
Additionally, interest in Bitcoin ETFs has surged, with BlackRock’s iShares Bitcoin Trust reaching $3.36 billion in trading volume, marking its highest level in six months.
As Coinbase navigates the fluctuating market, it has expressed confidence in continuing to diversify revenue streams through subscriptions and services, a strategy that has helped stabilize earnings in past downturns. This approach could prove critical as the company looks ahead to the post-election regulatory environment, particularly as Vice President Kamala Harris has voiced support for digital asset regulation, which could provide a boost to trading volumes in the coming quarters.
Oppenheimer analysts had anticipated a slowdown in trading volume, attributing it to the uncertain regulatory landscape and the upcoming U.S. election. The firm remains optimistic that Coinbase’s diverse revenue strategy will help cushion against future trading fluctuations.
photo source / Blockonome
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