Coinbase Global, Inc. reported significant financial improvements in its third quarter and year-to-date results for 2024, reflecting a robust recovery in the cryptocurrency market. For the three months ended September 30, 2024, the company achieved net revenue of $1,205.2 million, a 79% increase from $674.1 million in the same period of 2023. Year-to-date net revenue reached $4,292.4 million, up 99% from $2,154.6 million in the prior year. This growth was primarily driven by a substantial rise in trading volume, which reached $185 billion for the quarter, a 143% increase year-over-year.

The company's operating income for Q3 2024 was $169.5 million, compared to an operating loss of $79.8 million in Q3 2023. Net income for the quarter was $75.5 million, a significant turnaround from a net loss of $2.3 million in the same quarter last year. For the nine months ended September 30, 2024, net income totaled $1,287.9 million, compared to a loss of $178.6 million in the same period of 2023.

Coinbase's total operating expenses for Q3 2024 were $1,035.7 million, up from $754.0 million in Q3 2023, reflecting increased costs associated with higher trading volumes and marketing efforts. Notably, sales and marketing expenses surged by 111% to $164.8 million, driven by increased digital advertising and USDC rewards payouts.

The company also reported a significant increase in customer crypto assets safeguarded, which rose to $272.7 billion as of September 30, 2024, compared to $192.6 billion at the end of 2023. Cash and cash equivalents increased to $7.7 billion, up from $5.1 billion at the end of 2023.

Strategically, Coinbase completed the acquisition of One River Digital Asset Management in March 2023, enhancing its institutional asset management capabilities. The company has also implemented a share repurchase program of up to $1.0 billion for its Class A common stock, authorized in October 2024.

Despite these positive developments, Coinbase continues to face regulatory challenges, including ongoing litigation related to its staking services and compliance issues. The company has committed to investing in its compliance function, following a $50 million penalty paid to the New York Department of Financial Services in January 2023.

Overall, Coinbase's performance in 2024 reflects a strong recovery in the cryptocurrency market, with significant increases in revenue, profitability, and customer engagement, alongside strategic initiatives aimed at enhancing its market position.

About Coinbase Global, Inc.

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