Morning Minute: Coinbase Smashes Q3 Earnings Despite Sideways Crypto Market

Morning Minute is a each day e-newsletter written by Tyler Warner. The evaluation and opinions expressed are his personal and don’t essentially replicate these of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

At this time’s high information:

Crypto majors fall 2-3% after Powell says charge minimize not sure in December
US Senator claims Binance helped with TRUMP launch for CZ pardon
Coinbase smashes earnings with $1.9B in income; Armstrong toys with point out markets
MSTR beats earnings with $2.8B in revenue, holds 640,808 BTC
Token Works broadcasts REKTSTR as first ERC20 technique

📈 Coinbase Crushes Q3 Earnings, Transaction Income Toplines Surge

Crypto alternate Coinbase smashed its Q3 earnings.

And now finds itself outperforming Bitcoin in 2025.

📌 What Occurred

Coinbase introduced its Q3 outcomes yesterday after market closed, blowing previous expectations.

Key takeaways:

Income of $1.9B (~55% year-over-year), beating consensus by roughly $200M
Internet earnings $433M (477% YOY)
Transaction income topped $1B (+83% YOY), a demographic shift pushed by institutional flows and high-frequency buying and selling
Month-to-month transacting customers (MTUs) got here in at 12.6M, exceeding expectations and reversing the prior quarter’s decline
Base Layer (the corporate’s Layer-2 chain) achieved constructive adjusted EBITDA for the primary time
Ahead steering: Coinbase tasks This fall income within the $2.2B–$2.3B vary, assuming common each day buying and selling quantity within the $300B vary and modest crypto worth tailwinds.

Coinbase additionally purchased ~$300M of Bitcoin in Q3.

🗣️ What They’re Saying

“We’re accelerating funds by means of stablecoin adoption, which we anticipate will proceed given coverage tailwinds, and ongoing adoption from monetary establishments and corporates for fee and treasury wants.” – Coinbase shareholder letter

We had a robust Q3 at Coinbase:

– Vital income, and constructive adjusted EBITDA- Continued progress on our Every thing Trade vision- Notable energy throughout derivatives merchandise

Right here’s a fast overview of our Q3 monetary outcomes: https://t.co/JfC0LaeAIl

— Brian Armstrong (@brian_armstrong) October 30, 2025

🧠 Why It Issues

Coinbase has just a few elements in its favor proper now: volatility, institutional demand, stablecoin adoption and favorable regulatory shifts.

Increasing on these:

Heightened volatility in digital-assets in July and powerful institutional curiosity helped drive the surge in transaction revenues
They see the rising significance of stablecoins for funds and treasury use, saying they anticipate continued progress of stable-coin adoption supported by “coverage tailwinds” and institutional/ company demand
Buying and selling volumes and income benefited from a crypto rally tied to each macro developments and favorable regulatory shifts.

Plus, their L2 Base continues to shine and drive significant income for the corporate.

It’s a robust mixture.

And they’ll want it, with increasingly more huge banks and establishments stepping into the crypto recreation (custody, buying and selling and extra).

However possibly that turns right into a tailwind for Coinbase as nicely, with their crypto-as-a-service providing beginning to take off.

The stronger Coinbase is, the extra interesting COIN inventory is in comparison with crypto majors (even Bitcoin).

Many who’re simply exploring the area might be interested in the income and fundamentals COIN affords). And it has outperformed Bitcoin YTD.

If that development continues, count on extra capitulation out of crypto tokens and into the picks and shovels (COIN inventory).

🌎 Macro Crypto and Memes

A number of Crypto and Web3 headlines that caught my eye:

Crypto majors are down 1-3% after a serious post-FOMC dip yesterday; BTC -3% at $110,100, ETH -3% at $3,900, BNB +1% at $1,120, SOL -2% at $192
ZEC (+2%) and AERO (+2%) led high movers
870M+ was liquidated from the crypto market yesterday after Bitcoin’s dip to $106,000 driving many alts down 5-10%+
Senator Chris Murphy has alleged that Binance helped coordinate the Trump memecoin launch in alternate for CZ’s pardon (additionally featured on the WSJ)
Coinbase Q3 beat income with ~$1.9B, transaction income tops $1B
Coinbase CEO Brian Armstrong additionally talked about a number of key phrases from prediction market point out markets, elevating considerations over market integrity
Technique (MicroStrategy) Q3 reported ~$2.8B revenue in Q3 regardless of softer BTC; treasury >$68B BTC (640,808 BTC)
Drake & Adin Ross had been sued, with the category motion lawsuit alleging deceptive promos for crypto on line casino Stake
Western Union utilized to trademark WUUSD for its stablecoin

In Company Treasuries / ETFs

In Memes

Memecoin leaders are largely pink; DOGE -2%, Shiba -1%, PEPE -3%, PENGU -8%, BONK -2%, TRUMP -1%, SPX -7%, and FARTCOIN -7%
LAB (+80%), pippin (+69%) and jelly jelly (+23%) led high meme movers; MACHINES +88x main high movers