Transaction fees, which make up the bulk of Coinbase’s revenue, hit US$1.56 billion, up from US$572.5 million the previous quarter.
Overall, revenue soared to US$2.3 billion, more than doubling from US$954 million a year ago and surpassing Wall Street estimates of US$1.84 billion.
The company posted a net profit of US$1.3 billion, far exceeding analysts’ expectations, with earnings per share reaching US$4.68.
Coinbase’s stock has climbed 112% over the past year, hitting a three-year high of US$349.75 in December before settling around US$304 in after-hours trading.
The resurgence of Bitcoin, which doubled in 2024 before crossing US$100,000, played a key role in driving trading volumes. The approval of spot Bitcoin and Ethereum ETFs in the US also contributed to higher market participation, with Coinbase serving as a custodian for many of these products.
CEO Brian Armstrong noted that regulatory clarity could further benefit the company, as new leadership at the Securities and Exchange Commission (SEC) signals a shift in crypto policy. Acting SEC Chair Mark Uyeda has launched a task force focused on clearer regulations, with Commissioner Hester Peirce leading the initiative.
“The rest of the world is watching and will feel pressure to embrace crypto adoption,” Armstrong said.
Beyond trading, Coinbase’s subscription and services segment—covering staking, custody, and stablecoins—rose 14% quarter-over-quarter to a record US$641 million. Revenue from reserves backing Circle’s USDC stablecoin came in at US$226 million, down slightly from the previous quarter but up from US$172 million a year ago.
Armstrong outlined a “stretch goal” to make USDC the top stablecoin by accelerating partnerships and integrating payment support across Coinbase’s products. With a market cap of US$56 billion, USDC trails only Tether’s US$142 billion footprint.
Coinbase’s total trading volume surged 185% year-over-year to US$439 billion, reflecting a broader crypto revival. As competition with traditional brokerages heats up, Coinbase sees its role as expanding the overall crypto investor base.
“We’re not in a zero-sum game—we’re growing the market,” said Anil Gupta, Coinbase’s Vice President of Investor Relations.
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