Crypto: Coinbase returns to profit, prediction markets take off
Coinbase reports $719 million in Q3 net profit, including $715 million in crypto capital gains. Prediction markets exceed 200 million annualized. The article Crypto: Coinbase returns to profit, prediction markets take…
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Coinbase reports earnings of $2.51 per diluted share, significantly above expectations. However, $715 million comes from the revaluation of its cryptocurrencies. These accounting gains reflect the increase in assets held, without necessarily corresponding to sales. Excluding investment gains and other adjustments, adjusted net income reached $78 million.
Total revenue stood at $1.22 billion, stable compared to the previous quarter, but down 35% year-on-year. Transaction revenue fell 1% to $590 million, while exceeding the expected $527 million.
Spot trading volume also decreased by 8%, to $135 billion. Despite this slowdown, Coinbase says it has gained market share. Adjusted EBITDA thus increased by 60% over three months, to $333 million.
Finally, management is once again reducing its annual forecast for adjusted expenses by $100 million. It is now targeting a range between $4.15 and $4.3 billion.
Prediction markets constitute one of the main growth drivers. Their annualized revenue rate exceeds $200 million, up from around $100 million three months ago. This figure represents an extrapolation of the pace of activity, and not the revenue actually collected over the quarter.
The number of daily traders increases by more than 60%. According to Brian Armstrong, CEO of Coinbase, contracts linked to cryptocurrencies have particularly supported this progression during calmer sporting periods.
Stablecoins also contribute to this diversification: their revenues reached $307 million, up 5% over three months, in particular thanks to the USDC issued by Circle.
Despite these results, Coinbase shares lost 4.8% in extended trading, to $152.85. Bernstein, however, maintains a target of $250, while William Blair values the stock at around $240.
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- Journal du Coin2 Nov, 15:00Crypto: Coinbase returns to profit, prediction markets take off ↗Figures: 719 millions · 715 millions · 200 millions
| Publisher Journal du Coin (general tier) | +72 |
| Checkable figures cited | +3 |
| Detailed summary | +2 |
| Total | 77 |
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