Coinbase Profits Drop 75% in Q3 Despite Dogecoin, SHIB Listings

Coinbase followed a record Q2 with $406 million in net income for July through September. Read the full article by: Jeff Benson

Key Points:

• Coinbase reported their earnings report yesterday and they earned $406 million in this past quarter. While that is still an amazing number and even a 500% increase from Q3 of last year it was a big decrease quarter-over-quarter.

• Last quarter Coinbase saw a net income of $1.6 billion; however, in Coinbase’s defense trading volume has decreased across the entire crypto market. Square also reported a loss of 23% in its BTC revenue from last quarter. Robinhood also reported a 75% decrease in its crypto trading revenue which was a large part of their profits in the past year.

• Coinbase has added a lot of tokens to its platform to increase trading volume and meet users interests as they have done by adding DOGE and SHIB in the past couple of months. "We don't know precisely which assets customers are going to adopt, so our strategy is one that supports all legal assets," said Haas.

• While this earning report has dropped Coinbase stock price by 13% so far this morning we can also justify the drop in trading volume by thinking about how the volume the quarter before was unprecedented. Over the next couple of quarters it will be interesting to see if it continues to drop or if we see it level off. Either way Coinbase will be fine in the long run.