The exchange generated $1.26 billion in revenue and a net income of $25 million.
It also announced a buyback of up to $1 billion.
Coinbase (Nasdaq: COIN) missed Wall Street’s Q3 2024 revenue estimate of $1.26 billion, reporting $1.2 billion. Its earnings per share of $0.28 also fell short of analyst expectations of $0.45. The crypto exchange’s EBITDA of $449 million also missed expectations by $20.2 million.
Coinbase Faces “Softer Market Conditions”
The missed estimates impacted the company’s share price, which dropped by almost 5 percent in after-hours trading. In a letter to shareholders, Coinbase attributed the slowdown to “softer market conditions.”
The total revenue of the exchange declined by 17 percent quarter-over-quarter, with transaction revenue at $573 million, down 27 percent. Although the company recorded a pre-tax loss of $121 million on its crypto asset investment portfolio, it achieved a net income of $75 million.
Influencing Crypto Policy
Despite these misses, the California-based exchange committed another $25 million to Fairshake, a political action committee for the digital asset industry. The lobby group will use the funds to support pro-crypto candidates leading up to the 2026 midterm elections.
“We’re not going to slow down post-election,” said Coinbase’s Chief Executive Officer Brian Armstrong during the exchange’s earnings call on Wednesday. “We know we need pro-crypto legislation passed in this country.”
Furthermore, the exchange’s board authorised a share buyback program of up to $1 billion. This program has no set deadline, meaning the firm will repurchase shares based on market conditions.
“The timing and amount of any repurchases will depend on market conditions, and any repurchases will be made at our discretion,” the shareholder letter stated. “This program does not obligate us to repurchase any specific dollar amount or number of shares of our Class A common stock, and the program may be modified, suspended, or discontinued at any time.”
Coinbase (Nasdaq: COIN) missed Wall Street’s Q3 2024 revenue estimate of $1.26 billion, reporting $1.2 billion. Its earnings per share of $0.28 also fell short of analyst expectations of $0.45. The crypto exchange’s EBITDA of $449 million also missed expectations by $20.2 million.
Coinbase Faces “Softer Market Conditions”
The missed estimates impacted the company’s share price, which dropped by almost 5 percent in after-hours trading. In a letter to shareholders, Coinbase attributed the slowdown to “softer market conditions.”
The total revenue of the exchange declined by 17 percent quarter-over-quarter, with transaction revenue at $573 million, down 27 percent. Although the company recorded a pre-tax loss of $121 million on its crypto asset investment portfolio, it achieved a net income of $75 million.
Influencing Crypto Policy
Despite these misses, the California-based exchange committed another $25 million to Fairshake, a political action committee for the digital asset industry. The lobby group will use the funds to support pro-crypto candidates leading up to the 2026 midterm elections.
“We’re not going to slow down post-election,” said Coinbase’s Chief Executive Officer Brian Armstrong during the exchange’s earnings call on Wednesday. “We know we need pro-crypto legislation passed in this country.”
Furthermore, the exchange’s board authorised a share buyback program of up to $1 billion. This program has no set deadline, meaning the firm will repurchase shares based on market conditions.
“The timing and amount of any repurchases will depend on market conditions, and any repurchases will be made at our discretion,” the shareholder letter stated. “This program does not obligate us to repurchase any specific dollar amount or number of shares of our Class A common stock, and the program may be modified, suspended, or discontinued at any time.”
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
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The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
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