Coinbase Global, Inc

Coinbase Global, Inc (NASDAQ: COIN): operates as a holding entity for Coinbase, Inc. and its affiliated subsidiaries, offering a regulated platform that facilitates secure access to the onchain economy. The Company enables users to interact with digital assets across both its proprietary services and integrated third-party applications, including decentralized platforms, supporting a broad range of crypto-based financial and transactional activities.

Financial Performance Overview for the quarterly period ended September 30, 2025 (Q3FY25)

• Robust Revenue Growth and Earnings Expansion: Coinbase delivered a strong financial performance in the third quarter of 2025, with total revenue reaching approximately USD 1.9 billion, reflecting a sequential increase of 25%. Transaction revenue rose sharply to around USD 1.0 billion, supported by higher trading activity across consumer and institutional segments, while subscription and services revenue expanded to USD 747 million. Profitability remained solid, with net income reported at USD 433 million and Adjusted EBITDA of USD 801 million, underscoring improved operating leverage and diversified income streams.

Core Trading Operations Performance

• Acceleration in Consumer and Institutional Trading Activity: Trading volumes demonstrated broad-based momentum during the quarter, with total trading volume increasing to approximately USD 295 billion. Consumer trading volume grew 37% quarter-over-quarter to USD 59 billion, translating into transaction revenue of USD 844 million, driven by rising crypto prices and expanded asset availability. Institutional trading volume reached USD 236 billion, generating USD 135 million in revenue, more than doubling sequentially, primarily supported by strong derivatives participation following strategic platform enhancements.

Expansion of the Everything Exchange Platform

• Strategic Broadening of Asset Coverage and Derivatives Capabilities: Coinbase made substantial progress in executing its Everything Exchange strategy by significantly expanding tradable assets and scaling derivatives offerings. Through integrated decentralized exchange access, the platform increased asset availability from roughly 300 to over 40,000 tokens, now covering approximately 90% of total crypto market capitalization. Concurrently, the company launched regulated U.S. perpetual futures and completed the acquisition of Deribit, positioning Coinbase as a leading global crypto derivatives venue with combined quarterly notional volumes exceeding USD 840 billion.

Growth in Subscription and Services Revenue

• Stablecoin Adoption and Blockchain Rewards Driving Recurring Income: Subscription and services revenue continued to strengthen, rising 14% quarter-over-quarter to USD 747 million. Stablecoin revenue increased to approximately USD 355 million, supported by average USDC balances exceeding USD 15 billion on the platform and continued market share gains in stablecoin usage. Blockchain rewards revenue also rose to USD 185 million, benefiting from higher average prices of staked assets such as Ethereum and Solana, despite moderating reward rates reflecting ecosystem maturation. These trends highlight the increasing role of recurring revenue streams in stabilizing overall financial performance.

Operating Cost Dynamics and Workforce Investment

• Disciplined Expense Management Amid Strategic Expansion: Total operating expenses declined sequentially by approximately 9% to USD 1.4 billion, reflecting normalization of prior one-off costs despite continued investment in growth initiatives. Technology, development, general and administrative, and sales and marketing expenses increased in aggregate due to workforce expansion and integration of Deribit operations, which contributed roughly USD 30 million in quarterly costs. Full-time headcount rose 12% to nearly 4,800 employees, supporting infrastructure resilience, regulatory compliance, and product innovation efforts.

Balance Sheet Strength and Strategic Capital Deployment

• Enhanced Liquidity Position and Long-Term Financial Flexibility: Coinbase significantly strengthened its liquidity profile during the quarter, ending with approximately USD 11.9 billion in USD-denominated resources, supported by strong operating cash generation and proceeds from a USD 3.0 billion convertible debt issuance. When including crypto investment holdings and collateralized assets, total available resources exceeded USD 15 billion. The company also expanded its share repurchase authorization to USD 2.0 billion, reflecting confidence in long-term cash flow generation while maintaining ample capital for acquisitions, infrastructure investment, and regulatory preparedness.

Key Risks:

• Revenue Sensitivity to Crypto Market Volatility: Trading activity and transaction revenues remain closely linked to crypto price movements and investor sentiment, which can lead to sharp earnings fluctuations during market downturns.
• Regulatory and Compliance Uncertainty: Despite improving clarity, evolving global crypto regulations could increase operating costs, restrict certain products, or limit market access in key jurisdictions.
• Margin Pressure from Rising Competition: Growing participation from global exchanges, fintech platforms, and traditional financial institutions may drive fee compression, particularly in core trading services.
• Execution Risk in Platform Expansion and Acquisitions: Integrating acquisitions such as Deribit and scaling new offerings under the Everything Exchange strategy may strain resources and delay expected synergies.

Technical Observation (on the daily chart):

• Coinbase’s price remains in a clear downtrend, marked by consistent lower highs and lower lows, indicating sustained bearish control.
• The 20-day moving average has moved below the 50-day moving average, with both trending downward, confirming weakening short- to medium-term momentum.
• The stock is trading well below these moving averages, signaling limited buying strength and continued selling pressure.
• RSI is near oversold levels, reflecting strong bearish momentum while suggesting the potential for short-term consolidation or a minor technical rebound.
• Higher volumes during recent declines point to active distribution, keeping downside risks elevated unless key resistance levels are reclaimed.

Coinbase delivered a strong Q3 FY2025 performance marked by robust revenue growth, expanding profitability, and meaningful operational progress across its core platforms. The company benefited from rising trading activity in both consumer and institutional segments, accelerated adoption of derivatives following the Deribit acquisition, and continued momentum in high-quality recurring revenues driven by stablecoins and blockchain rewards. Strategic execution of the Everything Exchange vision significantly broadened asset coverage and strengthened Coinbase’s competitive positioning, while disciplined cost management and a reinforced liquidity base enhanced financial flexibility. Overall, the quarter reflects improving revenue diversification, scalable platform economics, and solid balance sheet strength, supporting a constructive long-term growth outlook.

Supported by a growing customer base, strengthening balance sheet, and sustained earnings momentum, a ‘Buy’ rating has been given Coinbase Global, Inc (NASDAQ: COIN) at the closing market price of USD 146.12 as of Feb 05,2026. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 05,2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.