Coinbase Reports Strong Q3, Aims to Invest in Digital Asset Services that Expand On-Chain Utility

Coinbase (NASDAQ:COIN) reports that Q3 was a strong quarter for the digital asset firm.

In a letter addressed to Coinbase shareholders, the firm says that amid multi-year low levels of volatility, they are pleased with their financial results.

Although the company has generated a net loss through Q3, they are on track to deliver meaningful positive Adjusted EBITDA for 2023, “reflecting the direction they set at the beginning of the year to be a company that can generate Adjusted EBITDA in all market conditions.”

As stated in the update from Coinbase Global, combined with a strong balance sheet with over $5.5 billion in resources, they are “now fully “determined to invest in the future and deliver the most trusted products and services that expand onchain utility.”

In Q3, Coinbase obtained new licenses that enable them “to access new markets and deliver new products, continued to drive toward regulatory clarity in the US, and built innovative products and services in the areas of derivatives and layer 2 solutions.”

According to Coinbase, this work is important now “because the opportunity is too large to let a tough market distract them.”

Coinbase says that they firmly believe “that onchain is the new online. Just like the Internet broke down barriers, democratized access to information, and made knowledge universally available, they believe crypto is doing the same with broader access to financial services and commerce.”

Coinbase believe the onchain companies of today “will be the tech giants of tomorrow, and they are positioning Coinbase at the forefront of this technology as a responsible, compliant, trusted, financially strong, and innovative business.”

The firm claims that these attributes “form the core of their competitive advantage, and they are staying focused on building technologies that expand crypto’s utility and position Coinbase to win.”

As stated in the latest announcement from Coinbase, the existing financial system, built over a century ago, is “outdated and ill-equipped for today’s digital economy, leading to global inefficiencies and limitations.”

At Coinbase, they aim to “bridge the gap between this aging system and the burgeoning cryptoeconomy in order to bring over 1 billion people into crypto.”

Although the journey may potentially entail volatility, given the industry’s nascent stage – yet enormous potential – they “perceive challenges as opportunities, remaining steadfast in their mission to increase global economic freedom.”

Coinbase added that they are “building a sustainable business to drive long term growth; in Q3, net loss was $2 million and they generated positive Adjusted EBITDA for the third consecutive quarter.”

Total revenue “was $674 million, down 5% Q/Q.”

Net revenue “was $623 million, down6% Q/Q.”

And the total operating expenses “were $754 million, down 4% Q/Q, while technology & development, sales & marketing, and general & administrative expenses collectively declined 1% Q/Q to $654 million.”

And net loss “was $2 million. Adjusted EBITDA was $181 million.” Their balance sheet remained strong “with over $5.5 billion in $USD resources which increased $20 million Q/Q.”

In Q3, they repurchased $263 million of their 2031 Senior Notes at an approximately 33% discount to par value or $177 million in cash. Q4’23 Outlook.

In October, Coinbase reportedly “generated approximately $105 million of transaction revenue.”

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