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Coinbase's Q3 revenue falls short and users drop to 7.4 million, and its stock sinks as the Binance hack weighs on crypto shares
Summary
Coinbase reported a third-quarter revenue decline on Thursday, and its shares fell sharply Friday, a day after Binance disclosed its roughly $6.3 billion hack, Cointelegraph and Bitcoin Magazine reported.
The outlets give slightly different revenue figures: Bitcoin Magazine put revenue at $1.20 billion against $1.233 billion analysts expected, while Cointelegraph said net revenue fell about 34% year over year to $1.16 billion.
Net income was $719 million, lifted by about $715 million in gains on crypto investments, while adjusted net income was $78 million, Cointelegraph reported; Bitcoin Magazine said monthly transacting users fell to 7.4 million from 9.3 million a year earlier, which Coinbase blamed on market conditions.
Cointelegraph said Coinbase shares dropped more than 13% Friday and Bitcoin Magazine said about 15%, with Bitcoin Magazine noting the drop was not necessarily due to earnings; Circle fell more than 9% and Strategy about 8%, per Cointelegraph.
Key facts
- Coinbase's prediction markets business passed $200 million in annualized revenue, both outlets reported.
- Subscription and services revenue reached $570 million and Coinbase's share of crypto trading volume rose to 10.7%, its fourth straight quarterly gain, Bitcoin Magazine reported.
- Adjusted EBITDA was $332.9 million, extending a run of 15 straight profitable quarters on that measure, Bitcoin Magazine reported.
- Filings show CEO Brian Armstrong adopted a Rule 10b5-1 plan in August to sell up to 8.17 million Class A shares from Nov. 16 through October 2027, and with similar plans from Fred Ehrsam and Emilie Choi the total is about 13.6 million shares, Bitcoin Magazine reported.
- IREN fell more than 10% and Figure Technology Solutions about 9% in the same crypto-stock selloff, Cointelegraph reported, citing Yahoo Finance data.
- Bitcoin Magazine said Coinbase stock is down more than 55% this year.