Coinbase profit rises 66% in the 3rd quarter as bitcoin rises
Adjusted profit of US$719 million surpassed that of a year earlier, but revenue was below analyst consensus.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM CNBC MARKETS · 2 MIN
Coinbase reported adjusted net profit of $719 million in the third quarter, up 66% from $433 million a year earlier, according to CNBC Markets. The result was largely attributed to the recovery of the crypto market, which also increased the value of the company's crypto investment portfolio.
Bitcoin rose 39% in the quarter ended September 30, and the recent price recorded by CNBC Markets was US$80,809. According to the same source, net profit was influenced precisely by variations in the value of this portfolio. Investing.com highlighted that the balance interrupts a sequence of losses for the company, amid the recovery of the sector.
On a per-share basis, profit was US$2.51. CNBC Markets noted that it's unclear whether that number is comparable to the 6 cents estimated by Wall Street analysts, prompting caution in reading. Revenue of US$ 1.20 billion was below the US$ 1.233 billion expected by the LSEG consensus.
In addition to financial performance, the company is accelerating expansion into products outside the crypto universe, such as artificial intelligence for traders, tokenized assets and prediction markets. According to CNBC Markets, annual revenue from prediction markets exceeded $200 million in the third quarter, and the number of traders grew 60% compared to the second quarter.
Vice President of Product Max Branzburg stated that the so-called “everything exchange” is expected to debut with tokenized stocks, derivatives, prediction markets and advance token sales. Also in early October, the company launched Coinbase for Agents, aimed at use with ChatGPT, Muse and other AI agents.
What changes for the investor
For those who follow Coinbase on the stock exchange, the balance sheet shows the sensitivity of profits to the recovery of the crypto market, as the appreciation of bitcoin and its own wallet weighed heavily on the result. Expanding into prediction markets, tokenized assets and derivatives could, in theory, diversify these revenue sources, but it still depends on the execution of announced launches. The points of attention are the revenue below consensus and the doubt about the comparison of earnings per share, data that is worth checking in the full report before making any conclusion. This material does not constitute a recommendation to buy or sell assets.
Automatically translated from Portuguese.
