Coinbase snaps losing streak with third-quarter profit on lower expenses

Coinbase Global disclosed a profit for the third quarter of its fiscal year, ending a period of three consecutive quarters marked by losses. The company's operating expenses were reduced by approximately 17% to $1.15 billion, down from $1.39 billion during the same period last year. The decline in expenses played a significant role in Coinbase's turnaround.

Despite the company's efforts, cryptocurrency trading activity has not shown a significant resurgence this year. This can be attributed to various factors including shifting monetary policy expectations, decreased inflows into digital asset investment products, and market volatility. Transaction revenue for the quarter dropped by 43% to $590.2 million, compared to $1.05 billion a year earlier.

The company's earnings for the period were $718.7 million, or $2.51 per share, compared to $432.6 million, or $1.50 per share, a year ago.