Coinbase narrows loss, while crypto trading volumes fall in Q3

Cryptocurrency exchange Coinbase narrowed its net loss to $2 million in the 3rd quarter as it notched a year-on-year boost in earnings regardless of lower trading volumes.The companys bottom line in Q3 was cut from a $545-million net loss in the previous year period, according to a Nov. 2 revenues statement.Total earnings increased 14.2% year-on-year to $674.1 million, though quarter-on-quarter profits fell 4.8%. The figure beat London Stock market Groups estimate of $653.2 million, according to a report from Reuters.Of the total revenue, $334.4 million originated from subscriptions and services (mostly stablecoin and blockchain benefits), while $288.6 million came from transaction-based revenues.Our Q3 23 upgrade is in.Read the full shareholder letter and tune in to our profits call here → https://t.co/fod43YZcAY pic.twitter.com/Iusjw1Uysx— Coinbase (@coinbase) November 2, 2023

Institutional trading volumes came in at $65 billion, down from $78 million in Q2 and $133 million in Q3 2022. These volumes have actually been trending downward for 5 successive quarters.Despite this, Coinbase stated in a statement it was pleased with how the quarter played out:” Q3 was a strong quarter for Coinbase.” The exchange also produced a favorable adjusted EBITDA for the 3rd consecutive quarter– a sign that its developing towards a “sustainable service” that can drive “long term development,” it said.Adjusted EBITDA stands for “incomes before interest, taxes, depreciation and amortization” and is a metric that supplies analysts with a method to make more significant comparisons to a range of business in the same industry.Related: Coinbase introduces managed crypto futures services for United States retail traders Coinbases profits statement for Q3 2023.