Coinbase announced on Wednesday upon releasing its third-quarter financial report that its board has approved a $1 billion stock buyback plan.
"In October 2024, our board authorized and approved a stock buyback plan allowing for the repurchase of up to $1 billion of Class A common stock outstanding, with no expiration date." Coinbase stated: "The timing and amount of any repurchases will depend on market conditions."
Coinbase also stated that its balance sheet is 'strong,' with the company having $8.2 billion in cash resources at the end of the third quarter, an increase of $417 million from the previous quarter.
The company added that the buyback plan will be determined at its discretion, with no obligation to 'repurchase any dollar amount or number of Class A common stock, and the plan may be modified, suspended, or terminated at any time.'
Coinbase (COIN) shares fell 5.33% to $200.48 in after-hours trading.
Most profits decreased
Due to cryptocurrency prices trading at lower levels in 2023, Coinbase's net revenue, net profit, and adjusted EBITDA all grew compared to the same period last year. However, compared to the previous quarter, only net profit increased, reaching $75 million, up from $36 million in the second quarter.
Coinbase's net revenue for the third quarter was $1.13 billion, down from $1.38 billion in the previous quarter. The adjusted EBITDA for the third quarter was $449 million, compared to $596 million in the previous quarter.
Compared to the second quarter, stablecoin revenue was one of the few sources of income that improved. Coinbase reported stablecoin revenue of $247 million, a slight increase from $240 million in the previous quarter, and the company's interest and other income also rose slightly.
"We have seen a significant growth in stablecoin transaction volume quarter-over-quarter. We believe this growth is partially driven by a product update that allows advanced traders to trade stablecoins more conveniently on our platform." Coinbase stated in its announcement: "Although we have generated almost no costs on stablecoin transactions, the adoption of stablecoins (especially USDC) is at the core of our strategy, as we monetize USDC through commercial arrangements with USDC issuers."
Our Q3 2024 earnings report is now live onchain. Mint the latest $COIN Earnings NFT to celebrate another quarter's worth of building.→ https://t.co/FJDnr0B6Bf pic.twitter.com/GGA9qlJ52S
— Coinbase (@coinbase) October 30, 2024
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