Coinbase Global reported a 66% year-on-year increase in third-quarter net income to $719 million as gains from cryptocurrency investments and growth in prediction markets helped offset weaker trading activity.
The U.S. cryptocurrency exchange generated $1.22 billion in revenue, down 35% from a year earlier while transaction revenue fell 44% to $590.2 million amid subdued crypto market activity.
The profit included a $715 million gain on cryptocurrency investments. Excluding investment gains and related adjustments, Coinbase reported adjusted net income of $77.7 million.
Coinbase’s prediction markets business surpassed $200 million in annualised revenue, doubling from approximately $100 million in the previous quarter.
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Prediction markets and derivatives accounted for about 25% of transaction revenue, according to Bernstein analysts, helping offset weaker spot trading.
Subscription and services revenue contributed $570.2 million, representing 49% of net revenue, as Coinbase expands beyond its core trading business.
Stablecoin revenue remained a key contributor, reaching $328 million, up 3% from the previous quarter.
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The results highlight Coinbase’s efforts to diversify revenue as crypto trading activity weakens with prediction markets, derivatives, and stablecoin services increasingly contributing to its business.
The company also reported a fourth consecutive quarter of crypto trading market-share gains reaching 10.7% in the third quarter.
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