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Did crypto winter hamper Coinbase’s Q3 financials?

Press Releases Crypto News AMB-Crypto Did crypto winter hamper Coinbase’s Q3 financials?

The company reported a 5% decrease in total revenue.
Regulatory clarity is a top priority for Coinbase, particularly in its tussle with the SEC.

Crypto exchange Coinbase has released its Q3 2023 shareholder letter, offering insights into its financial performance and strategic advancements.

The company reported a total revenue of $674 million for the quarter ended on 30 September, which marked a 5% decrease from the previous quarter.

The crypto market, characterized by low volatility and reduced trading volumes in Q3, experienced a 12% decline in Bitcoin prices compared to the previous quarter.

This decline in market activity contributed to Coinbase’s transaction revenue decreasing by 12% to $289 million.

On the flip side, Coinbase’s subscription and services revenue remained relatively steady at $334 million, compared to the previous quarter.

Stablecoin revenue also witnessed growth, rising by 14% to reach $172 million, mainly driven by higher interest rates.

Despite these fluctuations in revenue, Coinbase’s financial position remained robust, ending Q3 with a strong balance sheet that included over $5.5 billion in cash, cash equivalents, USDC, and custodial account overfunding.

Q3 also saw Coinbase launch its Layer 2 scaling solution, Base, which saw over 10 million NFTs minted during its launch.

Coinbase’s outlook for the full year 2023 remains positive, showing confidence in the long-term potential of the cryptocurrency market.

Regulatory challenges lie ahead

Regulatory clarity is a top priority for Coinbase, and it acknowledges the adoption of crypto regulations by most G20 nations. The EU’s MiCA regulation is seen as a model framework, and Coinbase has chosen Ireland as its MiCA hub.

In the United States, the case with SEC is proceeding on schedule, with oral arguments set for early 2024.

In its latest and final filing in the New York District Court, Coinbase Go to Source to See Full Article
Author: Suzuki Shillsalot

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