US’s biggest crypto exchange, Coinbase, generated $172 million from USDC interest income during the third quarter of the year, its quarterly update stated. The letter also showed that Coinbase closed Q3 on a $2 million loss, the lowest it has recorded in a while.
Coinbase again beat analyst’s expectations, recording $674 million in net revenue in Q3 against the $651 million predicted. The exchange’s quarterly revenue also saw a 14% increase from its stance from the same period last year, signaling an improved broader market condition.
Strong Q3?
“Q3 was a strong quarter for Coinbase. Amidst multi-year low levels of volatility, we are pleased with our financial results. While we have generated a net loss through Q3, we are on track to deliver meaningful positive Adjusted EBITDA for 2023, reflecting the direction we set at the beginning of the year to be a company that can generate Adjusted EBITDA in all market conditions,” Coinbase stated in the letter to shareholders.
Coinbase’s claim of a strong Q3 comes after the exchange recorded a $2 million net loss, down from $79 last quarter and $545 million in Q3 last year. The crypto firm also saw a strong increase in USDC interest revenue.
However, other metrics apart from the aforementioned saw a dip quarter-to-quarter. Coinbase’s trading volume, transaction revenue, crypto asset volatility, and net revenue all fell from the last quarter. The exchange stated that the majority of those depreciations came from dwindling macroeconomics.
USDC Gains
One of the bright sides of Coinbase’s Q3 report was the increased USDC interest gains. The exchange recorded $172 million in interest, up from $151 million in the second quarter.
The report also stated that Coinbase has $5.5 billion in USD in cash and cash equivalents, which it can use to invest in the latest innovations. This is up $20 million from the last quarter.
Despite the positives of securing approval to run a crypto futures product from the Commodities Futures Trading Commission (CFTC), the battle with the Securities and Exchange Commission (SEC) dragged on. The court in charge of the case has set January 17, 2024, for a hearing on the matter.
