Cryptocurrency exchange Coinbase revealed its third-quarter financials on Nov 9 and reported making $1.23 billion in net revenue for the period. This is down 39% from the previous quarter, which saw the company rake in a record $2 billion in revenue. According to the report, net income was just $406 million, down almost 75% from the second quarter, which netted a whopping $1.6 billion in profits.
Coinbase reported an adjusted EBITDA of $618 million.
The cryptocurrency exchange reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $618 million. Coinbase described the period as having “softer crypto market conditions, driven by low volatility and declining crypto asset prices,” but still managed to notch up a tidy profit. Coinbase is known for having some of the highest transaction fees in the industry, and they remain the primary source of income for the company. It reported that of the total revenue, $1.08 billion came from retail and institutional transaction fees. This equates to 88.25% of the total revenue but was a decrease of 44% from the previous quarter.
Coinbase had total operating expenses of $1.02 billion for the quarter.
“Weighted average retail transaction fee rates were lower in Q3 compared to Q2 due to relatively higher trading volumes on Coinbase Pro, where we offer a tiered fee structure,” the report mentioned. The crypto exchange had total operating expenses of $1.02 billion for the quarter, a decline of 25% from the previous quarter. The company ended Q3 with approximately $6.4 billion in cash and cash equivalents. This is inclusive of the $2 billion in net proceeds associated with the senior notes issued in September 2021. The remaining $145 million in revenue came from subscriptions and services such as blockchain rewards, custodial fees, earn campaign revenue, and interest income.