Coinbase has once again shown that volatility pays. The exchange recorded its strongest quarter in over a year as trading activity surged.
The trading volumes spiked, supported by strong stablecoin revenue and optimism around pro-crypto policies from the US government.
Trading surge and institutional growth
According to company filings, Coinbase reported a net income of $432.6 million for the third quarter, or $1.50 per share, a sharp rise from $75.5 million during the same period last year.
Transaction revenue reached $1.05 billion, nearly doubling from $573 million a year earlier.
The exchange’s performance shows it is now operating from a position of strength after several quarters of muted activity.
Bitcoin’s price swings provided much of the momentum.
July’s market rally, driven by favorable crypto policies from President Trump’s administration, pushed trading volumes higher across exchanges.
Bitcoin’s new peaks attracted traders seeking short-term gains, while Coinbase captured much of the resulting activity.
When weaker US economic data triggered a market selloff in August, the exchange again benefited as investors repositioned their portfolios.
The volatility created a two-sided opportunity, boosting activity during both rallies and corrections.
Data from Wu Blockchain shows Coinbase added $299 million worth of Bitcoin to its balance sheet through steady weekly purchases.
The company now holds 14,548 BTC, signaling its strategy to expand its digital footprint while maintaining liquidity strength.
An interpret this accumulation as a sign of long-term confidence in Bitcoin’s role in institutional finance.
Following the earnings release, Coinbase shares rose more than 3%, reflecting investor optimism in its ability to profit across market conditions.
Expanding revenue streams and market reach
Coinbase’s subscription and services revenue increased 34% year-over-year to $746.7 million, backed by strong stablecoin performance.
Stablecoin-related income climbed to $354.7 million, up from $246.9 million in the same quarter last year.
The company attributed this growth to increased demand from corporations and institutions for digital payments and treasury solutions.
In its shareholder letter, Coinbase noted that stablecoin payments are gaining traction as businesses integrate them for settlements and treasury operations.
The company linked this growth to new US policy frameworks, including the GENIUS Act, which promotes stablecoin regulation and adoption.
The quarter also saw Coinbase complete its acquisition of Deribit, a leading crypto derivatives exchange.
Third Bridge stated the move closes a critical gap in Coinbase’s product offering by giving it access to the thriving options market.
Deribit’s dominance in crypto options trading positions Coinbase to compete more directly with other global exchanges.
CEO Brian Armstrong said the company is working toward becoming an “everything app” for finance.
Coinbase aims to introduce tokenized stocks, prediction markets, and additional digital asset services while continuing strategic acquisitions.
Despite the recent strong earnings and crypto-market tailwinds, the cryptocurrency exchange stock remains volatile and still sits well below its 52-week high of $444.64. At press time, the Coinbase stock was trading within the $320-$355 range, having gained about 60% year-to-date.