Coinbase News: Q3 Earnings Surge 37%, CEO Commits to Adding More Bitcoin

Coinbase news from the third-quarter 2025 shareholder letter shows that the cryptocurrency exchange delivered strong financial results.

The company reported transaction revenue of $1.0 billion, a 37% increase quarter-over-quarter, and total revenue of $1.9 billion, a 25% increase from Q2. Net income reached $433 million with Adjusted EBITDA of $801 million.

At the same time, CEO Brian Armstrong announced on social media that Coinbase increased its Bitcoin holdings by 2,772 BTC during Q3.

Coinbase news shows aggressive Bitcoin accumulation

The Q3 shareholder letter revealed Coinbase increased its Bitcoin holdings by $299 million during the quarter, driven by weekly purchases for the company’s crypto investment portfolio.

As of September 30, 2025, the fair market value of crypto assets held for investment reached $2.6 billion.

The acquisition of 2,772 BTC during Q3 is a continued commitment to building Bitcoin reserves. Coinbase considers these holdings as primarily long-term investments rather than trading positions.

The systematic weekly purchase strategy allowed the company to accumulate at various price points throughout the quarter.

Strong revenue growth across business segments

Total Q3 revenue reached $1.9 billion, with transaction revenue contributing $1.0 billion and subscription and services revenue adding $747 million.

The transaction revenue increase of 37% quarter-over-quarter outpaced overall market growth. Total trading volume reached $295 billion, up 24% from Q2, while global crypto market spot trading volumes increased 38%.

Consumer transaction revenue reached $844 million, up 30% quarter-over-quarter. Consumer trading volume totaled $59 billion, up 37% from Q2, outperforming U.S. spot markets.

Institutional transaction revenue jumped 122% quarter-over-quarter to $135 million. The Deribit acquisition, which closed August 14, contributed $52 million of revenue in Q3.

Subscription and services revenue reaches new highs

Subscription and services revenue totaled $747 million in Q3, up 14% quarter-over-quarter. Stablecoin revenue reached $355 million, driven by USDC market capitalization hitting an all-time high of $74 billion.

Average USDC balances held in Coinbase products increased 9% to $15 billion, while average off-platform USDC balances grew 12% to $53 billion.

Blockchain rewards revenue reached $185 million, up 28% from Q2. Growth stemmed primarily from average ETH and SOL prices increasing 81% and 29% respectively, during the quarter.

Interest and finance fee income totaled $65 million, up 9% quarter-over-quarter. Average loan balances across institutional financing products grew 25% to reach an all-time high of $1.2 billion in Q3.

Assets Under Custody reached an all-time high of $300 billion as of quarter-end. Strong native unit inflows came partly from Coinbase’s role as primary custodian for the vast majority of crypto ETFs.

Total Q3 operating expenses declined $134 million or 9% quarter-over-quarter to $1.4 billion. Technology and development, general and administrative, and sales and marketing expenses collectively increased 14% to $1.1 billion.

This included $30 million attributable to Deribit. Full-time employees increased 12% quarter-over-quarter to 4,795.

Net income reached $433 million with an adjusted net income of $421 million. The effective tax rate for Q3 was 14%, lower than the U.S. statutory rate of 21% primarily from deductible stock-based compensation.

The company ended Q3 with $11.9 billion in USD resources, representing a $2.6 billion increase, or 28%, from Q2.

Q4 outlook and Bitcoin strategy continuation

Coinbase news regarding Q4 guidance projects subscription and services revenue between $710 million and $790 million.

The range shows growth in USDC market capitalization and Coinbase One subscribers, offset by interest rate cuts. Technology and development, as well as general and administrative expenses, are expected to be between $925 million and $975 million.

The company expects October transaction revenue of approximately $385 million, although management continues to urge caution in extrapolating these results.

Armstrong stated in an X post that “Coinbase is long bitcoin. Our holdings increased by 2,772 BTC in Q3. And we keep buying more.”