Coinbase Profit Climbs to $719 Million as Prediction Markets Pick Up the Slack

Coinbase closed the third quarter with net income of $719 million, a 66% rise from $433 million a year ago. A $715 million gain on crypto held for investment, against $424 million last year, drove much of that. Revenue reached $1.22 billion, flat from the prior quarter but 35% lower than a year earlier. Spot volume fell 8% to $135 billion, though Coinbase says its market share grew.

Prediction Markets Become a Real Revenue Stream

Annualized revenue from prediction markets passed $200 million, double the roughly $100 million of the last quarter. CEO Brian Armstrong said it kept growing even in slower sports months because of crypto contracts. Analysts estimates that prediction markets and derivatives bring in about 25% of transaction revenue, or 12% of the total. Coinbase’s derivatives volume slipped 7%.

Subscriptions and Stablecoins Add Balance

CFO Alesia Haas noted that subscriptions and services now make up nearly half of net revenue, while prediction markets move less with crypto volatility. Stablecoin revenue rose 3% to $328 million, including $21 million from USDC in corporate balances.

Shares closed Thursday at $160, down 1%.