Coinbase reported $1.9 billion in Q3 revenue on Thursday, beating Wall Street estimates and recording a 58% year-over-year increase.

The company’s earnings for the three-month period ending September 30 showed a 26% jump compared to the previous quarter.

Analysts had predicted Coinbase would bring in $1.8 billion, but the San Francisco-based exchange cleared that bar with ease.

The company also revealed $1.50 in earnings per share, higher than the expected $1.10, and reported $433 million in net income.

That figure dropped from the $1.4 billion posted in Q2, but it’s a major improvement over the $75 million Coinbase pulled in during the same quarter last year.

Shares rose 2% on Thursday, and in after-hours trading, the price climbed to $341. Coinbase’s stock has now gained 33% year-to-date, peaking at $444 in mid-July.

Crypto prices played a role. Bitcoin and Ethereum surged to record highs during Q3, pushing user activity back up after a dip in Q2, when traders retreated due to economic uncertainty and geopolitical drama.

Coinbase earned $1 billion in transaction revenue in Q3, compared to $764 million in Q2 and $573 million in Q3 last year. That figure includes both retail and institutional activity on its platform.

Coinbase buys 2,772 BTC, leans into Base growth

Coinbase also increased its Bitcoin holdings by 2,772 BTC during Q3. Brian Armstrong, the company’s CEO, confirmed the purchase Thursday, but he didn’t say when the BTC was bought. But it marks one of the largest single-quarter additions to Coinbase’s corporate treasury.

Armstrong and his team have been working to reduce Coinbase’s dependence on trading fees. Q3 earnings showed that the move is working. The company pulled in $355 million from stablecoin reserves, up 43% from $247 million in Q3 2024.

This revenue mostly came from interest earned on Circle’s USDC, which Coinbase helps manage. The exchange also generated $185 million from blockchain rewards, including staking payouts to customers.

Coinbase has been doubling down on Base, its Ethereum layer-2 network launched in 2023. Back in September, the company said it’s considering creating a Base token, but hasn’t committed to a timeline or design.

Despite the uncertainty, JPMorgan analysts projected the token could generate $12 billion in value for Coinbase. In that same note, JPMorgan bumped its price target to $404, with a possible Base token market cap of $12 billion to $34 billion.

Coinbase said in its earnings statement that “Base revenue growth was driven by higher average ETH price and a higher number of transactions.” Those transactions are stacking up.

Among all layer-2 chains, Base now leads in stablecoin usage, with over $4.6 billion in dollar-pegged tokens, according to DeFiLlama.

Coinbase said earlier this month that it has applied for a national bank trust charter. That move puts it alongside companies like Circle, Paxos, and Ripple, all of which are developing banking frameworks for their stablecoin operations.

If approved, Coinbase would gain access to more banking privileges and expand its regulated footprint in the U.S.

Armstrong’s team is also moving into tokenized real-world assets. Coinbase announced this summer that it’s working on bringing tokenized products to customers, following similar moves by Robinhood and Kraken.

The company hasn’t disclosed which assets will be included, or when this new service will go live. For now.

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