Coinbase significantly bolstered its Bitcoin treasury in the third quarter, purchasing an additional 2,772 BTC for approximately $299 million. According to its Q3 report, the exchange now holds a total of 14,548 BTC, valued at $1.57 billion, reinforcing its strategy of accumulating the digital asset for the long term.

The acquisition came alongside impressive financial results. The company’s net income surged more than fivefold year-over-year to $432.6 million. Total revenue also saw a substantial 55% increase from the previous year, reaching $1.9 billion for the quarter.

Financial Performance Driven by Diverse Revenue

The company’s revenue growth was powered by strong performance across its core business segments. Transaction revenue accounted for $1.05 billion, while income from subscriptions and services climbed 34.3% year-over-year to $746.7 million. This segment includes revenue from stablecoins and blockchain rewards, highlighting the diversification of Coinbase’s business operations.

Building the ‘Everything Exchange’

Throughout the quarter, Coinbase continued to advance its long-term vision of becoming an “Everything Exchange.” The company expanded the number of tradable spot assets on its platform and broadened its derivatives offerings to give users more trading options. In its report, Coinbase confirmed it made tangible progress on this strategy during Q3.

This vision extends beyond traditional crypto trading. The exchange plans to further integrate Circle’s USDC stablecoin and eventually incorporate tokenized stocks, prediction markets, and early-stage token sales to create a more comprehensive financial platform.

Institutional Dominance and Trading Trends

Institutional investors continue to be a major force on the platform, accounting for 80% of the $295 billion in trading volume during the quarter. Reflecting this trust, Coinbase’s assets under custody surpassed $300 billion, setting a new all-time high. The exchange also serves as a custodian for several Wall Street asset managers offering spot Bitcoin exchange-traded funds.

An interesting shift occurred in trading patterns, with Bitcoin making up 24% of transaction volume while Ether (ETH) accounted for 22%. This near-parity is a notable change from previous quarters where Ether’s volume was significantly lower than Bitcoin’s.

The market responded favorably to the earnings report, with COIN shares rising 2.84% in after-hours trading. Meanwhile, activity on Base, Coinbase’s Ethereum layer-2 network, grew across trading, payments, and social applications. The company also launched Flashblocks, a transaction pre-confirmation feature designed to enable block times as fast as 200 milliseconds.