Coinbase and Strategy Report Impressive Q3 Profit Growth

In a recent financial update, two prominent players in the cryptocurrency sector, Coinbase (COIN) and Strategy (MSTR), have showcased remarkable earnings for the third quarter (Q3) of the fiscal year.

Coinbase has outperformed analysts' profit expectations for Q3, driven by heightened volatility in digital currencies that significantly boosted trading activity on its platform. The firm announced a transaction revenue of $1.05 billion for the quarter, marking a substantial increase from $572.5 million during the same timeframe last year.

Moreover, the cryptocurrency exchange reported a net income of $432.6 million, equating to $1.50 per share, a sharp rise from the previous year’s earnings of $75.5 million, or $0.28 per share. This performance surpassed analysts' predictions of a profit of $1.06 per share, according to Reuters.

During the same quarter, Coinbase successfully completed its acquisition of Deribit. Alesia Haas, the company's Chief Financial Officer, highlighted in a conference call that Deribit holds over 75% of the market share for options, predominantly outside the United States.

This strategic acquisition positions Coinbase to expand its options market in the U.S. Additionally, the company expressed its commitment to enhancing payment systems through stablecoin adoption, pointing to favorable policy trends and increased interest from both financial institutions and corporations.

David Bartosiak, a stock strategist at Zacks Investment Research, commented, “Coinbase is cash-rich and growth-ready,” emphasizing the firm’s evolution from merely facilitating cryptocurrency trades to constructing the infrastructure for a new financial ecosystem.

Concurrently, Strategy, formerly known as MicroStrategy, reported significant profits in Q3, reversing a loss from the same period last year. The positive momentum in the cryptocurrency market has greatly benefited the company, which remains the largest corporate holder of Bitcoin (BTC).

As of October 26, Strategy’s holdings included 640,808 Bitcoin, with a total acquisition cost of $47.44 billion, averaging $74,032 per Bitcoin. With Bitcoin currently trading around $107,400, the company’s investment is poised for considerable appreciation.

Strategy’s net profit for the three months ending September 30 stood at $2.78 billion, or $8.42 per share, a striking contrast to the loss of $340.2 million, or $1.72 per share, reported a year earlier. However, it is notable that despite the rise in Bitcoin prices by 14.5%, Strategy’s stock has seen a decline of 12% so far in 2025.

Following the financial updates, COIN stocks surged by 3%, closing at $328, while Strategy’s shares rose nearly 4%, reaching around $254.

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