Coinbase's Q3 2025 earnings call on October 30th delivered a pleasant surprise to investors, showcasing a strong quarter driven by increased trading volumes and strategic expansion. However, it was CEO Brian Armstrong's seemingly offhand remark about the company being "long Bitcoin" that ultimately proved to be a lucrative signal for a select few.
Coinbase reported a net income of $433 million, or $1.50 per share, a significant surge compared to the $75.5 million, or $0.28 per share, in the same period last year. Total revenue reached $1.9 billion, exceeding analyst expectations. This impressive performance was fueled by a 37% increase in transaction revenue, reaching $1 billion, and a 14% rise in subscription and services revenue, climbing to $747 million. Trading volumes also saw a substantial increase, with total volume reaching $295 billion, a 59% jump year-over-year.
During the earnings call, Armstrong casually mentioned, "Coinbase is long Bitcoin. Our holding increased by 2,772 BTC in Q3. And we keep buying more". While seemingly a simple statement of the company's investment strategy, this declaration served as a powerful signal to those who interpreted it as a bullish indicator.
The timing of Armstrong's statement coincided with Bitcoin hitting fresh all-time highs during the quarter, spurring renewed activity from both retail and institutional investors. This market volatility, partly fueled by pro-crypto policies and subsequent sell-offs, boosted trading activity and revenue growth for Coinbase.
Those who heeded Armstrong's words and increased their Bitcoin holdings or invested in Coinbase stock after the earnings call have seen notable gains. Coinbase shares jumped over 4% in after-hours trading following the earnings release, and the stock is up approximately 33% year-to-date.
The "lucky few" who benefited from Armstrong's remark likely included a mix of savvy investors, institutional traders, and cryptocurrency enthusiasts who closely follow Coinbase's announcements and market trends. These individuals recognized the significance of Coinbase's increased Bitcoin holdings and the CEO's confidence in the cryptocurrency's future.
Coinbase's Q3 success can also be attributed to its strategic initiatives, including the expansion of its "Everything Exchange" vision. This strategy aims to create a unified platform for spot trading, derivatives, and on-chain services. The company has also made strides in expanding tradable assets, integrating decentralized exchanges (DEXs), and scaling U.S. perpetual futures. The acquisition of Deribit, a cryptocurrency options exchange, further boosted Coinbase's derivatives offerings and contributed $52 million to revenue in Q3.
Moreover, Coinbase is focused on stablecoin adoption, with customers holding an average of $15 billion of USDC on the platform in Q3. The company has also partnered with Citigroup to develop digital asset payment solutions, potentially incorporating on-chain stablecoin payments.
Looking ahead, Coinbase expects continued growth in subscription and services revenue in Q4, driven by the increasing USDC market capitalization and the expansion of its Coinbase One subscriber base. The company's focus on innovation, strategic acquisitions, and regulatory compliance positions it for continued success in the evolving cryptocurrency landscape.
While Brian Armstrong's "final words" on the Q3 call may have seemed like a casual observation, they ultimately proved to be a valuable piece of information for a select group of investors who capitalized on the opportunity. This incident highlights the importance of closely analyzing company communications and understanding market dynamics in the fast-paced world of cryptocurrency.
