When Coinbase announced its Q3 earnings report on Wednesday, this leading U.S. crypto exchange stated that its board of directors had approved a $1 billion share buyback program.

"In October 2024, our board of directors approved a share buyback program of up to $1 billion of Class A common stock without any time restrictions," Coinbase announced. "The timing and amount of shares repurchased will depend on market conditions."

Coinbase also affirmed its strong financial position as the company ended Q3 with $8.2 billion in resources, an increase of $417 million compared to the previous quarter.

The company stated that repurchases will be made at their discretion and there is no obligation "to repurchase any amount or number of shares of Class A common stock, and this program may be adjusted, suspended, or terminated at any time."

At the close of yesterday's trading session, Coinbase shares were traded at $211.74, down 3.61% according to Yahoo Finance.

Profits largely declined

On financial metrics, Coinbase's net revenue, net income, and adjusted EBITDA all increased compared to the same period last year when crypto prices were lower in 2023. However, compared to the previous quarter, only net income improved, reaching $75 million in the latest quarter, up from $36 million in Q2.

Coinbase reported net revenue of $1.13 billion in Q3, down from $1.38 billion in the previous quarter. Adjusted EBITDA in Q3 was $449 million, down from $596 million in the previous quarter.

Revenue from stablecoins is one of the few sources of growth compared to Q2. Coinbase reported stablecoin revenue of $247 million, slightly higher than the $240 million from the previous quarter. Interest from deposits and other income also saw a slight increase.

"We have seen significant increases in the trading volume of stablecoin pairs each quarter. To some extent, we believe this growth comes from product updates that make it easier for traders to trade stablecoins on our platform," Coinbase shared. "Although trading stablecoin pairs does not generate much direct profit, the acceptance of stablecoins (especially USDC) is core to our strategy as we benefit from USDC through agreements with the issuer."

Neutral attitude towards elections

Coinbase, which has long called for regulatory clarity in the U.S., expresses an optimistic and neutral stance ahead of the upcoming presidential election.

"As the 2024 U.S. elections approach, it is clear that crypto has asserted its position. With tens of millions of Americans owning crypto, many of whom are in strategic states, their voices have been heard. Both presidential candidates and politicians across the political spectrum have taken a more open stance towards crypto, a significant change from previous years," Coinbase shared in a letter to shareholders.

The company also emphasized that "regardless of the election outcome," Coinbase's leadership is "optimistic" about the future. "We are ready to work with any administration in 2025 and believe that the opportunity for crypto-friendly regulations has never been stronger."


Source: https://tapchibitcoin.io/coinbase-cong-bo-chuong-trinh-mua-lai-co-phieu-tri-gia-1-ty-usd.html