Coinbase Adds $300M in Bitcoin And Reports $1.9B in Q3 Revenue

TLDR

Coinbase adds 2,772 BTC worth $300M, boosting total holdings to 14,548 BTC.
Q3 net income rises to $432.6M as total revenue climbs 55% year-on-year.
Institutional trading makes up 80% of Coinbase’s $295B Q3 trading volume.
Assets under custody hit $300B as Coinbase pushes its Everything Exchange plan.

Coinbase has expanded its Bitcoin portfolio by adding $300 million worth of BTC in the third quarter, signaling its continued commitment to digital asset accumulation. The move comes as the exchange strengthens its “Everything Exchange” strategy — a roadmap to integrate spot trading, derivatives, stablecoins, and tokenized assets under one platform.

Coinbase Expands Bitcoin Holdings and Reports Strong Q3 Performance

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According to Coinbase’s Q3 financial report, the company’s Bitcoin holdings rose by 2,772 BTC, bringing the total to 14,548 BTC valued at about $1.57 billion. The exchange also posted strong quarterly results, with net income reaching $432.6 million — more than five times higher than last year’s $79.9 million. Total revenue climbed to $1.9 billion, marking a 55% increase year-on-year.

Transaction revenue accounted for $1.05 billion, while subscription and services income — which includes stablecoin revenue and blockchain rewards — grew 34.3% year-on-year to $746.7 million. Coinbase said the performance was driven by increased trading volumes and growing institutional participation.

“Everything Exchange” Vision and Strategic Expansion

In its report, Coinbase reiterated its long-term vision of becoming an “Everything Exchange.” The company said it has made progress by expanding tradable spot assets, strengthening derivatives offerings, and building new verticals such as tokenized stocks, early-stage token sales, and prediction markets.

“We laid out our vision of an Everything Exchange last quarter and made progress in Q3,” Coinbase noted in its filing. The exchange added that it continues to enhance infrastructure and product diversity to meet growing global demand.

A major component of the plan involves advancing stablecoin adoption through its partnership with Circle’s USDC. The company believes stablecoins can serve as a foundation for cross-border payments, remittances, and on-chain settlements, aligning with its strategy to broaden global accessibility.

Institutional Revenue Drives Trading Activity

Institutional clients continue to form the backbone of Coinbase’s trading operations. Institutional revenue accounted for about 80% of the company’s $295 billion total trading volume during Q3. Assets under custody surpassed $300 billion, setting a new record for the platform.

Coinbase also provides custody services for multiple asset managers running spot Bitcoin ETFs. The $299 million Bitcoin addition reflects the company’s commitment to holding BTC as a long-term asset while serving as a trusted custodian for institutional clients.

Interestingly, Ethereum’s share of trading activity nearly matched Bitcoin’s during the quarter. Ether accounted for 22% of transaction volume, compared to Bitcoin’s 24%, after trailing far behind in earlier quarters.

Growth Continues Across the Base Ecosystem

Adoption on Coinbase’s Ethereum Layer 2 network, Base, continued to increase through Q3. Activity grew across decentralized trading, payments, lending, and social applications. The company also introduced Flashblocks, a new feature that allows transactions to confirm in about 200 milliseconds, improving transaction speed and reliability.

During the earnings call, CEO Brian Armstrong refrained from providing updates on a potential Base token launch. However, he reaffirmed Coinbase’s commitment to developing scalable blockchain solutions that improve user experience and lower transaction costs.

Market Response and Broader Outlook

Following the earnings announcement, Coinbase shares rose 2.84% in after-hours trading, recovering slightly after a 5.8% decline during regular hours. Analysts attributed the rebound to strong quarterly performance and continued institutional engagement.

With its expanding Bitcoin holdings, robust revenue growth, and diversified services, Coinbase continues to position itself as a central hub for global digital asset trading under its “Everything Exchange” framework.