Coinbase says prediction markets are now a $200 million annualized business as Q3 profit metrics diverge
Coinbase said on Oct. 29 that its prediction markets business is now generating more than $200 million a year on an annualized basis, even as the broader crypto market faced a weaker quarter. The company also reported that paying Coinbase One memberships rose 24% year over year to a record high, extending growth for a fifth straight quarter. The quarter highlighted a sharp split between Coinbase’s two profit measures. Net income came in at $719 million, while adjusted net income was $78 million. CFO Alesia Haas said the gap was driven largely by unrealized gains on crypto assets held for investment. In the prior quarter, Coinbase had posted a net loss of $359.5 million. Coinbase said prediction market revenue has compounded at an 82% quarterly rate since launch, with daily prediction traders up more than 60% from Q2. More than half of contracts traded in Q3 were outside sports, according to Haas. The company also said it received approval from the Commodity Futures Trading Commission to list its own prediction market contracts. Total revenue held at $1.2 billion, subscription and services revenue reached $570 million, and average USDC balances on Coinbase products hit a record $22 billion.
