Coinbase reports revenue growth for Q3 2023
Coinbase reports revenue growth for Q3 2023
Cryptocurrency exchange Coinbase released its financial results for the third quarter of 2023, which pointed to revenue growth.
The exchange's third-quarter revenue rose 14% year over year to $674 million, which was significantly higher than the $654.7 million forecast. Meanwhile, trading volume for the period totaled $76 billion, falling short of expectations of $80.4 billion, Coincu reported.
Coinbase's net loss narrowed to $2.3 million from $545 million in the third quarter of last year. Total operating expenses from July through September were $754 million, and the adjusted loss per share was $0.01, well above FactSet's estimate of $0.55.
The exchange believes that the strong third-quarter performance was primarily due to the USDC stablecoin, which generated interest income of $172 million, up 12% from the second quarter.
It's worth noting that the crypto exchange is looking to diversify its services to adapt to new market conditions. Recently, Coinbase gave its users access to exchange-traded funds that invest directly in Bitcoin, as well as allowing U.S. retail clients with Advanced trader status to trade leveraged digital asset futures contracts through Coinbase Financial Markets.
It's worth noting that despite issues related to litigation with the U.S. Securities and Exchange Commission, Coinbase expects to post positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of 2023.
Read also: PayPal has been granted a crypto license by the FCA.
