Coinbase reports $719 million third-quarter profit on crypto investment gains; shares fall about 13% after Binance hack

Coinbase reported third-quarter net income of $718.7 million, or $2.51 a diluted share, on Thursday 29 October, up from $433 million a year earlier, according to its quarterly filing and CNBC. CNBC said the rise was largely due to gains in the value of the company’s crypto investment portfolio after bitcoin rose 39% in the three months to 30 September. Proactive Investors reported a $715 million net gain on crypto assets held for investment.

Revenue fell about 35% from a year earlier to about $1.2 billion, slightly below the roughly $1.23 billion analysts had expected, according to CNBC and Proactive Investors. Transaction revenue fell 44% to $590 million and subscription and services revenue fell 20% to $570 million, Proactive Investors reported. Trading volume was $1.21 trillion in the quarter.

Coinbase said prediction markets revenue had passed $200 million on an annualised basis. It lowered its full-year 2026 adjusted expense forecast to $4.15 billion to $4.30 billion, from $4.25 billion to $4.60 billion, Proactive Investors reported.

Chief executive Brian Armstrong said Coinbase was blocking transfers to wallets linked to the Binance theft and had offered help to Binance. “Moments like this call for the industry to work together,” he said, according to Proactive Investors.

Coinbase shares were down about 13% at $139.14 as of 17:25 GMT on Friday, according to Yahoo Finance data. Proactive Investors linked the fall to the revenue miss and to the Binance security breach, which weighed on crypto-related stocks.