Coinbase Set to Report Strong Q3 Earnings Amid Bitcoin Surge

San Francisco, CA — Cryptocurrency exchange company Coinbase Global Inc (NASDAQ: COIN) is expected to report strong third-quarter earnings on Thursday, spurred by heightened trading volumes as Bitcoin hit new highs.

Analysts forecast Coinbase will report revenue of $1.79 billion, an increase from $1.21 billion for the same period last year. Despite missing revenue estimates for two consecutive quarters, Coinbase has exceeded estimates in seven of the last ten quarters overall.

For earnings per share, analysts predict the company will show $1.13, up from 73 cents per share in the third quarter of 2022. Coinbase has beaten earnings expectations for two straight quarters and eight of the last ten quarters.

In a recent analyst note, Rosenblatt‘s Chris Brendler reiterated a Buy rating on Coinbase while reducing the price target from $470 to $450. He indicated that lower consumer trading volumes are partly offset by increases in stablecoin and staking revenues.

Brendler mentioned that the third-quarter results may be less significant than guidance regarding the Derebit acquisition, stating, ‘While estimates do not yet include this new option trading business and integration may take some time, we’re excited for details on this compelling strategic fit.’

BTIG analyst Andrew Harte also initiated coverage on Coinbase with a Buy rating and a $410 price target. Harte stressed Coinbase’s role in the cryptocurrency market, noting its secure trading platform and its position as a crucial link between traditional and decentralized finance.

Key items to watch in the upcoming report include Bitcoin’s meteoric rise to over $123,000 in August, which likely drove trading volumes upward. However, analysts remain divided on the exact level of trading activity for the quarter.

CEO Brian Armstrong has been actively engaging with congressional representatives, expressing optimism for crypto regulation legislation to materialize by the end of 2025. ‘I sat down with Senate Democrats and Republicans who want to get this done — we’re 90% there,’ he tweeted.

Coinbase recently completed its acquisition of Derebit, which may be a significant factor in forward guidance. A Wall Street Journal report also indicated Coinbase is in talks to acquire another company for approximately $375 million.

As of Wednesday, Coinbase’s stock is down 2.22% to $347.32, remaining up 36% year-to-date. Investors will be closely monitoring the earnings report for signs of recovery in key areas following recent declines in transaction, subscription, and trading revenues.