Coinbase Posts $719 Million Q3 Profit, Powered by Bitcoin Gains and Rapidly Growing Prediction Markets

Coinbase reported a $719 million profit for the third quarter, driven largely by investment gains in Bitcoin despite a 44% drop in transaction revenue to $590 million. Revenue totaled $1.216 billion, flat from the prior quarter but down 35% YoY, with spot trading volume falling 8% to $134.5 billion. The exchange’s prediction‑market business grew fastest, generating over $200 million in annualized net revenue and accounting for roughly 25% of transaction revenue, while subscription and services contributed nearly half of net revenue. Costs rose due to the USDC business and increased crypto‑asset investments. Coinbase’s CFO Alesia Haas highlighted a 60% rise in adjusted EBITDA to $333 million and a reversal of a $359 million loss from Q2, underscoring the company’s shift toward diversified, less volatile revenue streams.