Bitcoin News Today: Coinbase's Revenue Jumps, But Profitability Pressures Loom Amid Strategic Shift

Coinbase Global Inc. (COIN) reported a 37% quarter-on-quarter surge in transaction revenue to $1 billion during Q3 2025, driven by a rebound in trading volumes and a growing share of Ethereum activity on its platform, according to The Block report https://www.theblock.co/post/377030/coinbase-q3-revenue-surges-37-as-ethereum-trading-share-climbs-reversing-last-quarters-slump The Block report. The exchange's total revenue rose to $1.9 billion, nearly double the $1.2 billion recorded in the same period a year ago. This marked a reversal from the previous quarter, when Coinbase had reported declines in both trading volumes and transaction revenue.

Ethereum trading volume accounted for 22% of Coinbase's total trading activity in Q3, up from 15% in Q2, while Ethereum-derived transaction revenue climbed to 17% from 12%, according to the same report. Analysts at JPMorgan and Barclays highlighted the growing importance of stablecoin yields—particularly from USDC—and blockchain rewards as key revenue drivers in a Coindesk analysis https://www.coindesk.com/markets/2025/10/29/analysts-expect-strong-q3-for-coinbase-but-disagree-sharply-on-its-future Coindesk analysis. However, they diverged on how much of that income Coinbase could retain as it shifts toward subscription-based models and paid tiers for stablecoin yield access.

The results come amid a broader crypto market rebound. The third quarter saw total trading volumes on Coinbase reach $295 billion, up from $185 billion in Q3 2024, according to The Block report. Institutional analysts project total Q3 transaction revenue could exceed $1.05 billion, with subscription and services revenue potentially hitting $771 million, as noted in the Coindesk analysis. This growth was bolstered by the acquisition of derivatives platform Deribit, which Barclays estimates could add $45 million in revenue for Coinbase, though it also adds $10 million in incremental expenses, according to a Futunn preview https://news.futunn.com/en/post/63964519/preview-coinbase-q3-earnings-report-can-short-term-business-support Futunn preview.

Coinbase's strategic pivot toward non-trading revenue streams is drawing both optimism and skepticism. JPMorgan upgraded the stock to "Overweight" with a $404 price target, citing the potential of a Base token that could unlock $12 billion to $34 billion in value for the exchange, as noted in the Coindesk analysis. Conversely, Compass Point analyst Ed Engel maintained a "Sell" rating, warning that Coinbase's shift to lower-margin subscription services and rising competition in derivatives markets could pressure profitability.

The company's Bitcoin treasury strategy also remained in focus. CEO Brian Armstrong confirmed Coinbase added 2,772 BTC to its holdings in Q3, bringing its total Bitcoin purchases to 5,281 coins year-to-date, according to a CryptoBriefing report https://cryptobriefing.com/coinbase-adds-2772-btc-q3-armstrong/ CryptoBriefing report. "Coinbase is long bitcoin," Armstrong stated on X, emphasizing the firm's commitment to accumulating the asset. Meanwhile, the Trump administration's regulatory developments—such as the July stablecoin framework—were cited as tailwinds for Coinbase's expanding stablecoin and treasury services in a Yahoo Finance piece https://finance.yahoo.com/news/coinbase-stock-rises-after-company-posts-higher-revenue-on-crypto-market-upswing-210329917.html Yahoo Finance piece.

Looking ahead, the performance of Coinbase's Base blockchain and its potential token issuance will be critical. Revenue from the Base platform rose to $14 million in Q3, and JPMorgan estimates a native token could add $4 billion to $12 billion in value for Coinbase if it retains 40% ownership. However, investors remain cautious, with options data suggesting a post-earnings stock price swing of ±10.50%.

Coinbase's Q3 results underscore a crypto industry in transition. While trading volumes and Bitcoin prices remain volatile, the firm's expansion into derivatives, stablecoin services, and on-chain infrastructure highlights a broader shift toward diversified revenue models. As the exchange prepares to report its earnings after market close on October 30, the market will scrutinize whether its short-term gains can translate into sustainable long-term value.