Profits Slump On Coinbase In Q3 Despite Meme Coins Listings

According to the world’s most valuable crypto exchange Q3 earnings report, it earned $406 million.

This number represents a 500% boost from Q3 2020, but it is still a considerable drop from its record April through June when it earned $1.6 billion in its first period as a publicly-traded company.

On investors’ call, Coinbase CFO Alesia Haas mentioned that there was a decline in trading volume across the entire crypto spot market in Q3, which has been the case for most financial companies with crypto products.

Bitcoin and Ethereum now control less of Coinbase’s trading volume and revenue than they did in previous quarters, as the company expands its listing base. By comparison, Bitcoin and Ethereum each made up 26% of the total revenue in Q2 and 22% of the total in Q3. 57% of the transaction revenue and 59% of trading volume came from other crypto assets.

Since the exchange’s launch three years ago, it has worked to add new assets, expanding rapidly from the core five it offered in the past. Dogecoin, which boosted the exchange’s coffers when it was added at the beginning of June, and Shiba Inu, which debuted at the tail end of last quarter, were notable additions.

“Our strategy supports all legal assets since we are uncertain of which assets our customers will adopt,” said Haas.

Square, which allows Bitcoin buying and trading through its Cash App, reported a 23% drop in BTC revenues in Q3, contributing to a slight decline in overall profits.

The drop in crypto revenue at Robinhood was steeper, falling by 78%. According to the company, the app’s total revenue dropped from $565 million to $365 million.