Coinbase reported a profit of $719 million in Q3, reversing a Q2 loss of $359 million, primarily driven by gains from Bitcoin investments. Revenue for the quarter was $1.216 billion, flat quarter-over-quarter but down 35% year-over-year.

The prediction market business showed strong performance, with annualized revenue exceeding $200 million and daily traders growing over 60% quarter-over-quarter, making it one of Coinbase's fastest-growing segments and accounting for approximately 25% of trading revenue. Additionally, subscription and services revenue increased 3% quarter-over-quarter to $570 million, representing 49% of net revenue.

However, its stablecoin business faced challenges: USDC average balances increased 49% year-over-year to $22 billion, but stablecoin revenue decreased 5.4% to $306.9 million, while USDC rewards expense grew 15.8% to $129.2 million. This resulted in a 16.6% decrease in net stablecoin revenue (after rewards) to $177.7 million. Coinbase also increased its investment holdings in Bitcoin and Ethereum, with the fair value of its crypto asset investment portfolio growing 51.5% to $2.22 billion, including $715 million in investment gains.