Key Stats for Coinbase Stock
- 1-day Price Change for Coinbase stock: 4.65%
- $COIN Share Price as of Oct. 31: $344
- 52-Week High: $445
- $COIN Stock Price Target: $384
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What Happened?
Coinbase (COIN) stock climbed nearly 5% on Friday after the crypto exchange crushed third-quarter expectations, posting strong growth across both retail and institutional trading.
The results demonstrated that Coinbase is successfully executing its “Everything Exchange” strategy while benefiting from a more favorable regulatory environment under the Trump administration.
Net income increased to $433 million, or $1.50 per share, compared to $296 million in the same period last year. Revenue surged to $1.87 billion from $1.21 billion in the prior year period, also beating expectations of $1.81 billion.
The standout performance came from transaction revenue, which hit $1 billion—up 37% from the second quarter. CEO Brian Armstrong credited the growth to “continued product execution” as Coinbase expands beyond just crypto trading to become a one-stop shop for all types of assets.
On the retail side, consumer trading volume reached $59 billion, up 37% quarter-over-quarter. That translated to $844 million in transaction revenue from retail customers, a 30% increase.
Armstrong noted that the company made significant progress in expanding its asset offerings, increasing from approximately 300 tradable assets to over 40,000 by integrating decentralized exchange (DEX) protocols under the hood.
With DEX integrated, customers get day 1 access to new tokens as they are created, and we capture the upside when one of those takes off,” Armstrong explained on the earnings call.
Coinbase generated $135 million from institutional transactions in Q3, marking a 122% surge from the prior quarter.
Much of that came from the company’s $3 billion acquisition of Deribit, the leading crypto options exchange, which closed in August and contributed $52 million to revenue.
Total derivatives volume across Coinbase and Deribit exceeded $840 billion in the quarter, driven by stronger participation from institutions and advanced traders.
Coinbase was also the first to launch CFTC-regulated 24/7 perpetual futures contracts in the U.S., which helped drive all-time high derivatives volumes and market share.
Coinbase’s subscription and services revenue grew 14% to $747 million. That segment includes interest earned on customer USDC stablecoin balances, institutional lending, and custody services.
Coinbase customers held an average of $15 billion in USDC on the platform, making it the largest contributor to USDC’s $74 billion market cap.
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What the Market Is Telling Us About Coinbase Stock
The strong response to Coinbase’s earnings indicates that investors believe the company is successfully navigating a rapidly evolving cryptocurrency landscape.
Coinbase stock has surged 30% this year as regulatory clarity improves and the company diversifies beyond basic crypto trading.
Armstrong emphasized that regulatory progress under the Trump administration is expanding the total addressable market for crypto.
Federal regulators have been scaling back enforcement actions against digital asset firms, creating more certainty for companies operating in the space.
“We’ve spent a lot of time getting regulatory clarity, and that’s starting to bear fruit,” Armstrong said. “But it does mean that lots of new competition is coming in, and so we need to make sure we’re executing well.”
That’s where the Everything Exchange strategy comes in. Rather than just offering crypto trading, Coinbase is working to integrate prediction markets, tokenized stocks, and other asset classes onto its platform.
The company recently launched new products including derivatives contracts, expanded DEX integration, and acquired Echo—a platform for token launches and private sales.
CFO Alesia Haas highlighted strong early traction with institutional customers utilizing multiple Coinbase products.
Many institutions now use three or more services, from trading to custody to stablecoin payments. That diversification reduces Coinbase’s reliance on volatile trading fees and creates stickier customer relationships.
Stablecoins represent another significant opportunity as Coinbase is positioning USDC as the preferred stablecoin for payments, which could eventually disrupt traditional cross-border transactions.
The company projects that the majority of global payments will eventually shift to stablecoins, as they enable instant settlement for fees of less than a penny.
“The majority of global payments will shift to stablecoins over time because they allow you to send money anywhere in the world in under 1 second for less than $0.01,” Armstrong said. “No other payment rail can match this.”
Coinbase provided Q4 guidance suggesting continued momentum. The company expects October transaction revenue to be approximately $385 million and subscription revenue to be between $710 million and $790 million.
Operating expenses will increase by about $100 million at the midpoint, roughly half from recent acquisitions and half from headcount growth to support expansion plans.
Management noted that, following significant hiring in 2025, the pace of expense growth is expected to slow in early 2026 as the company focuses on execution.
Coinbase ended Q3 with $11.9 billion in cash and another $2.6 billion in crypto investments—a fortress balance sheet that gives it flexibility to invest opportunistically.
It is hosting a product showcase on December 17 where it will unveil new features built during the second half of 2025.
That event could provide additional catalysts for Coinbase stock if the company demonstrates meaningful progress on the Everything Exchange vision.
With crypto prices stabilizing and regulatory tailwinds building, Coinbase stock appears positioned to benefit from growing adoption of digital assets beyond just speculative trading.
The challenge will be maintaining market share as new competitors enter with regulatory clarity improving across the industry.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
