Coinbase, a cryptocurrency exchange, reported a net loss of $2 million in Q3 2023 despite rising revenue and a drop in trading volume, according to details of the recent shareholders letter circulated on Nov. 2.
However, the exchange reduced its net loss compared to the same period last year, which was $545 million.
The company’s total revenue was $674.1 million, an increase of 14.2% compared to last year, with $334.4 million coming from subscriptions and services, and $288.6 million from transaction revenue.
Consumer trade volume was $11 billion, while institutional trading volumes were $65 billion, an improvement from the previous quarter.
Although trading volumes have been falling for five consecutive quarters, the exchange is optimistic. It expects an improvement by the end of Q4 2023.
“Q3 was a strong quarter for Coinbase. Amid multi-year low levels of volatility, we are pleased with our financial results.”
Previously, Coinbase Advanced gave US retail traders access to regulated cryptocurrency futures contracts months after its subsidiary, Coinbase Financial Markets, received regulatory approval for crypto futures services.