"Coinbase, derivatives and stablecoin growth gaining momentum…building a balanced revenue structure"

JH Kim

Summary

Coinbase said third-quarter revenue was $1.9 billion, a 37% increase from the previous quarter.
Major Wall Street investment banks said derivatives and stablecoin businesses are the next-generation growth drivers.
The purchase of 2772 bitcoins and a $2 billion share buyback program were also mentioned positively.

U.S. digital asset (cryptocurrency) exchange Coinbase announced strong third-quarter results this year, and major Wall Street investment banks have repeatedly given positive assessments, saying that derivatives and stablecoin businesses will act as next-generation growth drivers.

On the 31st (local time), according to crypto-specialized media The Block, Coinbase recorded third-quarter revenue of $1.9 billion, a 37% increase from the previous quarter. Expanded Ethereum (ETH) trading volume and increased subscription and services revenue drove the performance. Net income was $1.44 per share, and EBITDA (earnings before income taxes, interest, depreciation and amortization) was $801 million, exceeding market expectations.

JPMorgan called this quarter a "clear earnings surprise (Commanding Beat)" and said that Coinbase's on-chain ecosystem expansion is becoming visible. However, it forecast that fourth-quarter operating costs will rise by about 12% due to acquisitions and new hires, and slightly lowered its target price from $404 to $399.

Chief analyst Kenneth Worthington analyzed, "Coinbase remains a leading acquirer in the digital asset market, and based on its $11 billion cash reserves it will have an advantage in future M&A."

Analyst Mark Palmer said, "Coinbase's 'Everything Exchange' strategy perfectly fit the bull market," and stated, "Stablecoin-related revenue recorded $355 million, a 7% increase from the previous quarter." He also regarded Coinbase's purchase of 2772 bitcoins (BTC) and its $2 billion share buyback program as positive signals.