Coinbase’s Bitcoin stock grew by 2,772 BTC during the third quarter as it doubled down on its Bitcoin strategy and continued working to become an “everything exchange.”
Coinbase’s Bitcoin (BTC) holdings have now reached 14,548 BTC, valued at $1.57 billion, according to its third-quarter report on Thursday. Meanwhile, net income increased five-fold to $432.6 million year-over-year, and total revenue rose to $1.9 billion, up 55% from a year ago.
This was bolstered by transaction revenue, which rose to $1.05 billion, while subscription revenue (including revenue from stablecoins and blockchain rewards) rose 34.3% year-on-year to $746.7 million.
Coinbase said it also continued to expand its trading verticals in an effort to become an “Everything Exchange” during the quarter.
“We laid out our vision for an Everything Exchange last quarter and moved forward in the third quarter by increasing the number of tradable spot assets, expanding our derivatives offerings, and continuing to lay the foundation for additional pillars,” Coinbase said in the report.
An important part of Coinbase’s Everything Exchange vision is to promote stablecoin adoption through Circle’s USDC stablecoin (USDC), as well as tokenized stocks, prediction markets, and early-stage token sales.
The market responded positively to the third-quarter results, with COIN shares rising 2.84% in after-hours trading after a drop of nearly 5.8% during regular trading hours on Thursday, according to data from Google Finance.
Coinbase continues to accumulate institutional income
Bitcoin purchases worth $299 million show Coinbase’s commitment to accumulating BTC as a long-term asset. It also custody the cryptocurrency for Wall Street asset managers that offer spot Bitcoin exchange-traded funds.
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Institutional revenue continues to dominate Coinbase’s trading activity, accounting for 80% of its $295 billion trading volume in the third quarter, while its assets under custody surpassed $300 billion, setting another all-time high.
Interestingly, Ether (ETH)’s share of Coinbase’s transaction volume (22%) almost caught up with Bitcoin’s (24%) after recording less than half of Bitcoin’s share in the previous three quarters.
Base Adoption Continues to Develop
Meanwhile, activity on Ethereum’s layer 2 base increased across trading, payments, lending and social applications in the third quarter, while Coinbase also launched Flashblocks, a transaction pre-confirmation feature that allows for 200 millisecond block times.
During the earnings call, Coinbase CEO Brian Armstrong did not share any new details about what stage the company is at regarding the potential launch of a Base token.
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