Coinbase Global's third-quarter adjusted net income reached US$719 million, up 66% from US$433 million a year earlier, driven largely by a recovery in the cryptocurrency market.
Coinbase Global, Inc. (NASDAQ: COIN) reported earnings per share of US$2.51 for the quarter, although it is not yet clear whether that figure is directly comparable to Wall Street analysts' expected profit of 6 US cents per share.
Revenue came in at US$1.20 billion, below analysts' expectations of US$1.233 billion.
The sharp rise in net income was mainly due to gains in the value of Coinbase Global, Inc. (NASDAQ: COIN)'s volatile cryptocurrency investment portfolio, which can swing widely even when the underlying holdings change little.
In the third quarter, the value of the company's crypto portfolio climbed as the digital asset market rebounded. Bitcoin, a key gauge of the broader crypto asset market, rose 39% in the three months ended September 30 and was recently trading at about US$80,809.
Expanding beyond Bitcoin
During the third quarter, Coinbase Global, Inc. (NASDAQ: COIN) stepped up its push into non-crypto products and services, including artificial intelligence integrations for traders, tokenized real-world assets and prediction markets.
In July, Vice President of Product Max Branzburg said Coinbase Global, Inc. (NASDAQ: COIN) would launch an "everything exchange" focused on tokenized equities and other real-world assets, derivatives trading, prediction markets and early-stage token sales.
The trading platform also launched Coinbase for Agents in early October, catering to users who want to use ChatGPT, Muse or other AI agents to manage portfolios, conduct research and trade various assets.
Coinbase Global, Inc. (NASDAQ: COIN) also expanded its prediction market offerings, giving users a broader range of event contracts.
In the third quarter, annualized revenue from prediction markets grew to more than US$200 million, and the number of traders in those markets rose 60% from the second quarter.
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