Coinbase Q3 Net Income Surges 66% to $719 Million but Crypto Investment Gains Drive Nearly All of It

Coinbase reported third-quarter net income of $719 million, a 66% jump from a year earlier, but the headline figure was heavily distorted by a $715 million gain on the cryptocurrency the company holds as an investment. Stripping that out, adjusted net income came to just $77.7 million, a figure that more accurately reflects the health of the underlying business. Revenue was flat at $1.22 billion amid a broader crypto slump, though transaction revenue beat analyst estimates.

Bright spots in the quarter included the company's prediction markets business, which crossed $200 million in annualized revenue, and average USDC balances held in Coinbase products reaching a record $22 billion, underscoring progress in diversification beyond pure trading fees.

Separately, Strategy reported a record $20.91 billion in operating income for the same quarter, driven almost entirely by a paper gain on its bitcoin holdings as prices rebounded. Net income reached $19.53 billion, or $44.75 per diluted share, compared with $2.79 billion in the same period a year prior. CFO Andrew Kang described the operating income figure as the largest in the company's history.