Coinbase Global reported third-quarter adjusted net income of $719 million, up 66 percent from $433 million in the same period a year earlier, the company said. The earnings growth was largely driven by a recovery in the cryptocurrency market, particularly a surge in bitcoin. The price of bitcoin rose 39 percent during the three-month period ended September 30 and recently traded at roughly $80,809. The company reported earnings per share of $2.51, though revenue of $1.20 billion fell short of the $1.233 billion that analysts polled by LSEG had expected.
The spike in Coinbase's profitability reflected gains in the company's cryptocurrency investment portfolio, which can fluctuate significantly based on movements in digital asset prices. The value of Coinbase's crypto holdings climbed during the quarter as the broader digital asset market rebounded, boosting the San Francisco platform's bottom line even as traditional revenue metrics lagged analyst expectations.
Beyond its core cryptocurrency trading business, Coinbase has been expanding into new product areas. The company deepened its push into non-crypto offerings in the third quarter, including artificial intelligence integrations for traders, tokenized real-world assets and prediction markets. The company announced plans for an 'everything exchange' that would feature tokenized stocks and other real-world assets, derivatives trading, prediction markets and early-stage token sales. In early October, Coinbase introduced Coinbase for Agents, allowing users to leverage AI assistants such as ChatGPT and Muse to manage portfolios and research and execute trades.
Prediction markets have emerged as a significant growth area. Revenue from prediction markets grew to more than $200 million on an annualized basis during the third quarter, while the number of traders participating in those markets climbed 60 percent compared with the second quarter. The company also expanded the range of event contracts available to users on its prediction market platform.