Despite the revenue decrease, Coinbase maintained profitability for the fourth consecutive quarter, reporting a $75 million profit compared to a $2 million loss in the same period last year.
The company’s performance reflects broader trends in the cryptocurrency market during the summer months.
Trading volumes, which represent Coinbase’s primary revenue source, decreased to $185 billion from $226 billion in the second quarter.
The decline was particularly noticeable among retail customers, with retail transaction revenue falling 27% to $483 million from $664 million in the previous quarter.
Institutional trading also saw a downturn, though less severe than retail. Transaction revenue from institutional users decreased 13% to $55 million from $63 million in the second quarter, highlighting a broader slowdown in trading activity across user segments.
In a move that caught market attention, Coinbase’s board of directors authorized a $1 billion stock repurchasing program.
The timing and amount of these repurchases will depend on market conditions, according to the company’s announcement.
The company’s stock performance has shown volatility throughout the year. After reaching highs of $279 in March, coinciding with Bitcoin’s peak around $73,000, shares had settled at $211 before the earnings announcement. The stock experienced a 4% decline in after-hours trading, dropping to $202.
Coinbase’s stablecoin revenue showed resilience, reaching $246 million, a slight increase from $240 million in the previous quarter. This growth was supported by a 7% increase in USDC holdings on the platform, which reached $6.6 billion.
The company’s layer-2 scaling network, Base, emerged as a bright spot in the quarterly results. The network showed strong growth, with transaction processing increasing by 55% compared to the previous quarter, establishing itself as a leader in on-chain activity.
In related industry news, MicroStrategy announced plans to raise $42 billion over the next three years to purchase Bitcoin. The company’s “21/21 Plan” involves raising $21 billion through equity and another $21 billion through fixed income.
The cryptocurrency market has seen increased institutional interest, particularly in Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust reported $3.36 billion in trading volume, reaching its highest level in six months.
Looking ahead, Coinbase maintains its focus on product development and user growth. The company expressed its readiness to work with either administration following the 2024 election, viewing the prospects for pro-crypto legislation as favorable.
Oppenheimer analysts had previously predicted the slowdown in trading volume, attributing it to a lack of positive catalysts and uncertainty surrounding the U.S. election.
However, they noted that Vice President Kamala Harris’ support for digital asset regulation could potentially benefit trading volumes in the fourth quarter.
The company continues to diversify its revenue streams through subscriptions and services, a strategy that proved valuable during previous market downturns. This approach has helped maintain stability despite fluctuations in trading volume.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
By USA Goldmines