Cryptocurrency exchange Coinbase reported third-quarter revenue of $1.13 billion, falling short of analysts' expectations of $1.25 billion.
The cryptocurrency exchange also reported net income of $75 million, marking the seventh consecutive quarter of positive Adjusted EBITDA of $449 million.
In a statement, Coinbase described the third quarter as a solid performance across its key priorities for 2024: increasing revenue, expanding crypto adoption, and securing regulatory clarity. Despite softer market conditions, the company saw growth in staking, on-platform USDC, and custody services, which helped diversify its revenue streams.
“We continue to build great products, focusing on some of the core building blocks that are now available to help onboard a billion users to the chain,” Coinbase said. One of the most important developments in Q3 was the integration of stablecoins across product offerings and the growth of the Base network. Coinbase highlighted Base’s success, claiming that it is now the leading Layer 2 network in terms of both transactions and total value locked (TVL).
Coinbase noted that the upcoming 2024 U.S. elections represent a critical turning point in its ongoing efforts to achieve regulatory clarity for the crypto industry. The company pointed to the growing influence of tens of millions of American crypto holders, especially in swing states, as a powerful voting bloc advocating for pro-crypto legislation.
Coinbase has partnered with notable advocacy organizations such as Fairshake, one of the largest nonpartisan political action committees (PACs), and StandWithCrypto, a grassroots group with approximately 1.8 million advocates.
“As we look beyond Election Day 2024, we are prepared to work with both administrations and believe the prospects for pro-crypto legislation are better than ever,” the company said.
*This is not investment advice.