Bitcoin News Today: Coinbase Aims to Be Crypto's Universal Bank as Earnings Soar

Coinbase Global Inc. (COIN) delivered a strong third-quarter performance, defying market volatility and regulatory uncertainties to post revenue of $1.9 billion, a 26% increase from the prior quarter and exceeding Wall Street forecasts, according to a Yahoo report. The crypto exchange's shares rose in after-hours trading to $341, marking a 33% year-to-date gain as Bitcoin's "Uptober" rally fueled renewed investor optimism, as reported by TS2 Tech. Earnings per share (EPS) came in at $1.50, surpassing the $1.10 consensus estimate and reflecting a net income of $433 million—a stark improvement from $75 million in Q3 2024, a Yahoo report noted.

The results underscored Coinbase's evolving business model, with subscription and services revenue growing to $747 million—a 14% sequential increase—according to a Markets report. Transaction revenue, while still volatile, rebounded to $1 billion for the quarter, up 37% from Q2 2025, as Bitcoin's price surged to record highs, according to a Forbes article. "Coinbase is long Bitcoin," CEO Brian Armstrong affirmed, noting the company added 2,772 BTC to its holdings in Q3, bringing total reserves to 14,548 BTC, according to CryptoBriefing. This strategic accumulation mirrors broader institutional adoption, with corporate treasuries increasingly viewing Bitcoin as a reserve asset, according to Ambcrypto.

The earnings beat was further bolstered by Coinbase's derivatives business, which processed $840 billion in notional trading volume after the Deribit acquisition, a Yahoo report noted. Institutional trading revenue surged 122% quarter-over-quarter to $135 million, while retail trading volume hit $59 billion, outpacing U.S. spot market growth, the Markets report added. Analysts highlighted the exchange's operating leverage, with adjusted EBITDA jumping to $801 million—a 56% increase from Q2 2025—despite a challenging macroeconomic environment, according to a Reuters report.

Market sentiment remains cautiously optimistic. Prediction markets on Polymarket assigned Coinbase a 74% probability of beating earnings expectations as of October 30, according to Polymarket. Wall Street analysts, including J.P. Morgan and Bernstein, upgraded their price targets, with the latter setting a $510 level based on Coinbase's "unique ecosystem" and potential to become crypto's "universal bank." However, critics warned of lingering risks. "COIN's valuation (~12× sales) leaves little margin for error," noted one strategist, citing sensitivity to crypto price swings.

Regulatory tailwinds also bolstered the report. The SEC's quiet dismissal of its enforcement case against Coinbase and the passage of crypto-friendly legislation, including the GENIUS and CLARITY Acts, reduced operational overhang, according to Ambcrypto. Coinbase further solidified its institutional footprint by securing a European MiCA license and partnering with Citigroup to expand digital asset payment capabilities, Ambcrypto added.

Looking ahead, Coinbase faces a delicate balancing act. While Q4 guidance projects subscription and services revenue of $710–$790 million, analysts at Compass Point caution that "weak August/September seasonality and waning retail interest" could dampen growth, in a Seeking Alpha preview. Meanwhile, J.P. Morgan models $779 million in Q3 subscription revenue, citing USDC adoption and Ethereum ETF inflows, the Seeking Alpha preview also noted. The company's plans to tokenize stocks and potentially launch a Base token—estimated to add $12 billion in value by JPMorgan—could further diversify revenue streams, the Yahoo report added.