Coinbase profits crash by 75% despite the DOGE and SHIB listings also following a Q2 record with $406 million in net income so what could be the case for the worsening performance? Let’s find out today in our Coinbase news.
Coinbase as the largest US-based exchange reported third-quarter earnings of $406 million and this number represented a 500% increase in Q3. However now, the Coinbase profits crashed by 75% which is an enormous step down from April when the publicly-traded company posted a net income of $1.6 billion. Financial companies that offer crypto products reported reduced Q3 revenues compared to Q2 when the markets were percolating which is something that CEO Alesia Haas discussed in the investors call when she said that the trading volume on the entire crypto spot market dropped each quarter.
Square that allows BTC purchases and trading via its Cash app, also saw a 23% drop in BTC revenue in Q3 which only contributes a slight decrease in the overall profit for the company. Robinhood’s drop was even harsher with the revenue falling 78% and the total revenue for the stock and crypto trading app dropped from $565 million to $365 million. If you see the year-over-year earnings, the picture is improving. All three companies see crypto as a long-term investment strategy so that is good for their future outcome. Coinbase is expanding its listing while Bitcoin and Ethereum don’t have a controlled majority of trading volume or transaction revenue. Both ETH and BTC revenue was down from 26% with each of the totals in the second quarter coming down by 21% and 23% in the third quarter. Other crypto assets accounted for 57% of the transaction revenue as well as 59% of the trading volume.
The exchange also added new assets and expanded from a core five that it kept it for longer than three years. The most notable addition was DOGE which spiked the platform’s profits and also added SHIB which started trading on the exchange at the tail end of last quarter. Haas said:
“We don’t know precisely which assets customers are going to adopt, so our strategy is one that supports all legal assets.”
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