Coinbase has made a significant move by adding $300 million in Bitcoin to its holdings, reinforcing its commitment to the cryptocurrency and its vision of becoming an "Everything Exchange". This strategic accumulation of Bitcoin aligns with Coinbase's broader plan to integrate various asset classes, including crypto assets, derivatives, and tokenized traditional securities, into a unified on-chain trading platform.
The announcement coincided with the release of Coinbase's Q3 earnings, which exceeded expectations with $1.9 billion in revenue. CEO Brian Armstrong confirmed the increased Bitcoin holdings via a post on X, stating, "Coinbase is long Bitcoin. Our holding increased by 2,772 BTC in Q3. And we keep buying more". As of the Q3 report, Coinbase's Bitcoin holdings have reached 14,548 BTC, valued at $1.57 billion.
This move underscores Coinbase's bullish outlook on Bitcoin and its role in the future of finance. The company is not only accumulating BTC for its own balance sheet but also custodies cryptocurrency for Wall Street asset managers offering spot Bitcoin exchange-traded funds. Coinbase's assets under custody have surpassed $300 billion, marking an all-time high.
Coinbase's "Everything Exchange" vision aims to create a one-stop shop for all tradable assets on-chain. This includes spot trading, derivatives, and on-chain services. The company is making strides in expanding its derivatives offerings, including the launch of CFTC-regulated perpetual futures in the U.S. and the acquisition of Deribit, a global crypto options platform. In Q3, Deribit contributed $52 million in revenue as Coinbase expanded its derivatives business to include 24/7 perpetual futures trading in the U.S.
Coinbase is also focused on scaling payments by advancing stablecoin adoption and building the foundation of the future financial system. The development of Base, Coinbase's Ethereum layer-2 network, is a key component of this strategy. Base has become the leading L2 for stablecoin adoption, with $4.6 billion in dollar-pegged assets.
The company aims to attract users through regulated spot and derivatives markets and retain them with financial utilities such as custody and rewards. The "Everything Exchange" strategy encompasses three layers of activity: trading, financial services, and applications.
The market has responded positively to Coinbase's Q3 results and its strategic moves. Shares of Coinbase Global (COIN) jumped in after-hours trading following the earnings announcement.
Coinbase's commitment to expanding its offerings extends beyond Bitcoin and derivatives. The company plans to incorporate tokenized stocks, prediction markets, and early-stage token sales into its platform. Max Branzburg, Coinbase's Vice President of Product, stated, "Everything you want to trade, in a one-stop shop, on-chain… We're bringing all assets on-chain — stocks, prediction markets, and more".
