0001679788FALSE00016797882024-10-302024-10-30

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 30, 2024
Coinbase Global, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware001-4028946-4707224
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
One Madison Avenue
Suite 2400
New York, NY
 10010
(Address of principal executive offices)1
 
(Zip Code)1
Not Applicable
(Registrant’s telephone number, including area code)1
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, $0.00001 par valueCOINThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
1 We are a remote-first company. Accordingly, we do not maintain a headquarters. We are including this address solely for the purpose of compliance with the Securities and Exchange Commission’s rules. Stockholder communications may also be sent to the email address: secretary@coinbase.com.



Item 2.02   Results of Operations and Financial Condition.
On October 30, 2024, Coinbase Global, Inc. (the “Company”) issued a shareholder letter (the “Shareholder Letter”) announcing its financial results for the quarter ended September 30, 2024. In the Shareholder Letter, the Company also announced that it will be holding a conference call to discuss its financial results for the quarter ended September 30, 2024. A copy of the Shareholder Letter is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
In addition to filings with the Securities and Exchange Commission, the Company uses its Investor Relations website (investor.coinbase.com), its blog (blog.coinbase.com), press releases, public conference calls and webcasts, its X feed (@coinbase), Brian Armstrong’s X feed (@brian_armstrong), its LinkedIn page, and its YouTube channel as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.


Item 9.01   Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.  Description
99.1  
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COINBASE GLOBAL, INC.
Dated: October 30, 2024By:/s/ Alesia J. Haas
Alesia J. Haas
Chief Financial Officer

cover-sec_2xa.jpg
Third Quarter 2024
October 30, 2024
1
Note: Figures presented may not
sum precisely due to rounding.
[1] Net income included $121 million
in pre-tax losses on our crypto
asset investment portfolio, the vast
majority of which were unrealized.
These losses were $92 million
after reflecting the tax impact.
[2] Adjusted EBITDA is a non-GAAP
financial measure.
[3] $USD resources is defined as
cash and cash equivalents and
USDC (net of USDC lent or
pledged as collateral).
For additional financial information
and a reconciliation between
GAAP and non-GAAP results,
please refer to the reconciliation of
GAAP to Non-GAAP results table
in this shareholder letter and our
Q3’24 Form 10-Q filed with the
SEC on October 30, 2024.
image1.jpg
Q3 was a solid quarter for Coinbase across our three priorities for 2024: driving revenue, crypto
Fellow
Shareholders,
utility, and regulatory clarity.
In Q3, we generated $1.2 billion in total revenue and $75 million in net income*. Q3 was our 7th
* See footnote [1] below.
consecutive quarter of positive Adjusted EBITDA, which was $449 million. And despite softer market
conditions, we saw average native unit growth across staking, on-platform USDC, and custody,
which helps diversify revenue over the long-run.
We continue to build great products, with a focus on some of the building blocks that are now in
place to help bring one billion users onchain. In Q3, we made significant progress advancing some
of these building blocks — notably, integrating stablecoins across our product suite and growing the
Base network — which is now the #1 L2 in terms of both transactions and total value locked.
Finally, the upcoming 2024 elections are the next major milestone in our ongoing work to drive
regulatory clarity for crypto. The voices of tens of millions of American crypto owners — many in
swing states — have formed an undeniable voting bloc and built momentum on both sides of the
aisle toward pro-crypto legislation. We continue to be a trusted partner to policymakers and
organizations like Fairshake one of the largest non-partisan PACs and StandWithCrypto — an
independent grassroots advocacy group with approximately 1.8 million crypto advocates. Looking
beyond Election Day 2024, we are prepared to work with either administration and believe the odds
of pro-crypto legislation are better than ever.
2
Chapter 1: Q3 was a solid quarter and marked our 7th consecutive quarter of positive Adjusted
EBITDA. Q3 total revenue was $1.2 billion, down 17% Q/Q. Transaction revenue was $573 million, down 27%
Q/Q. While average native units grew Q/Q for staking, custody, and on-platform USDC, subscription and
services revenue declined 7% Q/Q to $556 million, largely due to lower average crypto asset prices. Total
operating expenses were $1.0 billion, down 6% Q/Q, while technology & development, general &
administrative, and sales & marketing expenses were collectively $873 million, up 3% Q/Q. Net income was
$75 million and included $121 million in pre-tax losses on our crypto asset investment portfoliothe vast
majority of which were unrealized — as crypto prices were lower on September 30, 2024 as compared to June
30, 2024. These losses were $92 million after reflecting the tax impact. Adjusted EBITDA was $449 million. Our
balance sheet strengthened, as we ended Q3 with $8.2 billion in $USD resources, up $417 million Q/Q. Lastly,
in October 2024, our board of directors authorized a $1.0 billion share repurchase program.
Chapter 2: In Q3, we continued to make important progress against our goals of driving revenue and
crypto utility. We are working to drive revenue growth through products like derivatives, international
expansion, custody, and deeper integration of USDC into the cryptoeconomy. Expanding crypto utility requires
us to build foundational infrastructure that reduces friction, increases network capability, and integrates
seamlessly into everyday use.
Chapter 3: It is clear that crypto has already made its mark as we approach the 2024 elections — and
we remain committed to advancing regulatory clarity. The voices of tens of millions of Americans that own
crypto have been heard, as both Presidential candidates and politicians across the political spectrum have
adopted more favorable positions towards crypto. Looking beyond the elections, we will continue to support
organizations like Fairshake, one of the largest non-partisan PACs, and we remain committed to growing the
influence of StandWithCrypto, which has approximately 1.8 million crypto advocates. We are excited to work
with either administration in 2025 and believe the odds for meaningful, pro-crypto regulation have never been
stronger.
Chapter 4: Q4’24 Outlook. In October, we generated approximately $190 million of total transaction revenue,
and we expect Q4 subscription and services revenue to be within a range of $505-$580 million. We expect Q4
transaction expenses will be in the mid-teens as a percentage of net revenue. We expect technology &
development and general & administrative expenses to range from $690-$730 million. Finally, we expect sales
and marketing expenses to increase Q/Q to $170-$220 million, primarily driven by higher USDC rewards
expense and higher seasonal brand spend.
Select Financial Metrics
FINANCIAL METRICS ($M)
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Net Revenue
623
905
1,588
1,380
1,129
Net Income (Loss)
(2)
273
1,176
36
75
Adjusted EBITDA*
178
324
1,014
596
449
Q3’24 Coinbase Results vs. Outlook
METRIC
COINBASE Q3 OUTLOOK (August 2024)
Q3 ACTUALS
Subscription and Services Revenue
$530 – $600 million
$556 million
Transaction Expenses
as a percentage of net revenue
Mid teens as a % of net revenue
Dependent on revenue mix
15%
Technology and Development +
General and Administrative Expenses
including stock-based compensation
$700 – $750 million
including ~$230 million in stock-based
compensation
$708 million
including $230 million in
stock-based compensation
Sales and Marketing Expenses
including stock-based compensation
$160 – $210 million
including ~$19 million in stock-based compensation
$165 million
including $19 million in
stock-based compensation
*During the first quarter of 2024,
we revised our definition of
Adjusted EBITDA and recast prior
periods for comparability. For the
revised definition and for a
reconciliation of net income (loss)
to Adjusted EBITDA, please refer
to the section titled “Revised
Definition of Adjusted EBITDA” and
the reconciliation table included at
the end of this shareholder letter.
3
Q3 was a solid quarter and marked our 7th consecutive quarter of positive
Chapter 1
Adjusted EBITDA.
Q3 total revenue was $1.2 billion, down 17% Q/Q. Transaction revenue was $573 million, down 27% Q/Q.
While average native units grew Q/Q for staking, custody, and on-platform USDC, subscription and services
revenue declined 7% Q/Q to $556 million, largely due to lower average crypto asset prices. Total operating
expenses were $1.0 billion, down 6% Q/Q, while technology & development, general & administrative, and
sales & marketing expenses were collectively $873 million, up 3% Q/Q. Net income was $75 million and
included $121 million in pre-tax losses on our crypto asset investment portfolio the vast majority of which
were unrealizedas crypto prices were lower on September 30, 2024 as compared to June 30, 2024. These
losses were $92 million after reflecting the tax impact. Adjusted EBITDA was $449 million. Our balance sheet
remains strong, as we ended Q3 with $8.2 billion in $USD resources, up $417 million Q/Q. Lastly, in October
2024, our board of directors authorized a $1.0 billion share repurchase program.
Total Revenue ($M)
TOTAL REVENUE
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Transaction Revenue
Consumer, net1
247.0
468.9
935.2
664.8
483.3
Institutional, net
14.1
36.7
85.4
63.6
55.3
Other transaction revenue1
27.5
23.6
56.1
52.5
34.0
Total transaction revenue
288.6
529.3
1,076.7
780.9
572.5
Subscription and Services revenue
Stablecoin revenue
172.4
171.6
197.3
240.4
246.9
Blockchain rewards
74.5
95.1
150.9
185.1
154.8
Interest and finance fee income2
42.5
48.9
66.7
69.4
64.0
Custodial fee revenue
15.8
19.7
32.3
34.5
31.7
Other subscription and services revenue2
29.3
40.1
63.7
69.6
58.7
Total subscription and services revenue
334.4
375.4
510.9
599.0
556.1
Net Revenue
623.0
904.6
1,587.7
1,379.9
1,128.6
Corporate interest and other income
51.1
49.2
49.9
69.7
76.6
Total Revenue
674.1
953.8
1,637.6
1,449.6
1,205.2
Note: Figures presented may not
sum precisely due to rounding.
1 During the first quarter of 2024,
we reclassified Base and payment-
related revenue from consumer,
net to other transaction revenue.
Prior period amounts have been
reclassified to conform to current
period presentation.
2 During the first quarter of 2024,
we reclassified Prime Financing
fees earned to interest income,
and renamed interest income to
interest and finance fee income.
Prime Financing fees were
previously included in other
subscription and services revenue.
Prior period amounts have been
reclassified to conform to current
period presentation.
4
Transaction Revenue
Total crypto market capitalization was approximately flat Q/Q when comparing the end of Q3 to the end of Q2,
*Crypto Asset Volatility represents
our internal measure of crypto
asset volatility in the market
relative to prior periods. The
volatility is based on intraday
returns of a volume-weighted
basket of all assets listed on our
trading platform. These returns are
used to compute the basket’s
intraday volatility which is then
scaled to a daily window. These
daily volatility values are then
averaged over the applicable time
period as needed.
however average crypto market capitalization decreased 10% Q/Q over the same period. Meanwhile, crypto
asset volatility*a key driver of trading volume** — declined approximately 5% when comparing the Q3
average with the Q2 average.
Against this macro backdrop, total trading volume in the US spot market — where the majority of our revenue is
deriveddeclined 18% Q/Q. Total Coinbase trading volume was $185 billion, down 18% Q/Q. Total
transaction revenue was $573 million, down 27% Q/Q.
Consumer Transaction Revenue. Q3 consumer transaction revenue was $483 million, down 27% Q/Q.
**Trading volume represents the
total US dollar equivalent value of
spot matched trades transacted
between a buyer and seller
through our platform during the
period of measurement.
Q3 consumer trading volume was $34 billion, down 8% Q/Q. There are three key takeaways for Q3 regarding
consumer trading:
First, our share of fiat-crypto trading volume in the US — where the majority of our Consumer revenue
is derived — remained largely steady Q/Q.
Second, we saw stablecoin pair trading volume grow significantly Q/Q. In part, we believe this growth
was driven by a product update which enabled an easier way for Advanced traders to trade
stablecoins on our platform. While we generate little to no fees on our stablecoin pair trades, growing
adoption of stablecoins (and USDC specifically) is core to our strategy as we monetize USDC via our
commercial arrangement with the issuer of USDC.
Third, we saw a decrease in non-trading Consumer transaction revenue — this includes revenues
from decentralized trading through Coinbase Wallet and miner fees.
Institutional Transaction Revenue. Q3 institutional transaction revenue was $55 million, down 13% Q/Q.
Q3 institutional spot trading volume was $151 billion, down 20% Q/Q, largely driven by lower volume on our
spot exchange, which serves market makers and other participants who tend to be less active during periods of
low volatility. We saw relative outperformance in both our Prime Broker and our institutional derivatives offering
in Q3, both in the US and through our international exchange.
Other Transaction Revenue. Other transaction revenue was $34 million in Q3, down 35% Q/Q, primarily
driven by lower Base sequencer fee revenue. The number of transactions on Base increased 55% Q/Q as
users and developers took advantage of lower fees (median fees in Q3 were less than $0.01). We believe that
more developers will choose to build their products on Base as the cost to transact becomes lower. This
quarter we saw developer engagement continue to increase, and the number of new contracts deployed more
than doubled from Q2.
5
TRADING VOLUME ($B)
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Consumer
11
29
56
37
34
Institutional
65
125
256
189
151
Total
76
154
312
226
185
TRADING VOLUME (% OF TOTAL)
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Bitcoin
38%
31%
33%
35%
37%
Ethereum
19%
15%
13%
15%
15%
USDT
15%
13%
11%
10%
15%
Other crypto assets
28%
42%
43%
40%
33%
Total
100%
100%
100%
100%
100%
TRANSACTION REVENUE (% OF TOTAL)
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Bitcoin
37%
29%
30%
31%
35%
Ethereum
18%
13%
15%
17%
16%
Solana
*
*
*
10%
11%
Other crypto assets
46%
57%
55%
42%
38%
Total
100%
100%
100%
100%
100%
*Below reporting threshold of 10%
Note: Figures presented may not
sum precisely due to rounding.
Subscription and Services Revenue
Q3 subscription and services revenue was $556 million, down 7% Q/Q. Overall, we were pleased to see
average native units grow Q/Q across staking, custody, and on-platform USDC balances. However, native unit
growth was more than offset by headwinds from lower average crypto asset prices.
Stablecoin revenue was $247 million, up 3% Q/Q. The primary drivers of growth were higher average USDC
on-platform balances — which grew 7% Q/Q to $6.6 billion — and higher average USDC market capitalization
— which grew 5% Q/Q. These drivers were partially offset by lower effective interest rates. At the end of Q3,
we had $8.1 billion in on-platform USDC balances, and USDC market cap reached $36 billion, the highest total
since early 2023.
Year-to-date, USDC has been the fastest growing major USD stablecoin. Our platform incentives, combined
with deeper integration of USDC across our products, have been contributors to both market cap and on-
platform balance growth.
Blockchain rewards revenue was $155 million, down 16% Q/Q. The primary driver of the Q/Q decline was
lower average crypto asset prices — notably ETH and SOL. We saw increases in average native units staked
this quarter, and continued to work on commission rate optimization.
Interest and finance fee income was $64 million, down 8% Q/Q. The primary driver of the Q/Q decline was
lower average custodial fiat balances. As a reminder, we do not manage our business to grow these balances,
which can vary quarter-to-quarter with market volatility. In addition, we continue to see good customer
momentum and adoption across Prime Financing, but revenue declined modestly Q/Q as financing demand
moderated in tandem with lower market trading activity.
Custodial fee revenue was $32 million, down 8% Q/Q. While we continued to see Q/Q growth in average native
unit balances — fueled in part by our role as the primary custodian on the vast majority of BTC and ETH ETF
productslower average crypto asset prices contributed to the Q/Q decline. We ended Q3 with $137 billion in
assets under custody.
6
Other subscription and services revenue was $59 million, down 16% Q/Q. Coinbase One reached a new all-
time high in subscribers, but revenues declined Q/Q primarily due to pricing experimentation. Additionally, we
saw a significant decline in Learning Rewards as no new campaigns were launched.
Expenses
In Q3, total operating expenses were $1.0 billion — down 6% or $71 million Q/Q. Technology & development,
general & administrative, and sales & marketing expenses collectively increased by $23 million or 3% Q/Q,
driven primarily by the non-linear expense recognition of our stock-based compensation. We ended Q3 with
3,672 full-time employees, up 5% Q/Q.
Operating Expenses ($M)
OPERATING EXPENSES
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
Transaction expense
90.6
125.6
217.4
191.5
171.8
% of net revenue
15%
14%
14%
14%
15%
Technology and development
322.8
323.1
357.9
364.3
377.4
Sales and marketing
78.2
106.3
98.6
165.3
164.8
General and administrative1
252.6
313.9
287.2
320.1
330.4
(Gains) losses on crypto assets held for operations, net
0.0
0.0
(86.4)
31.0
(0.1)
Crypto asset impairment, net
7.2
(51.8)
0.0
0.0
0.0
Restructuring
(0.9)
0.0
0.0
0.0
0.0
Other operating expenses (income), net1
3.5
21.1
2.4
34.4
(8.6)
Total operating expenses
754.0
838.2
877.1
1,106.5
1,035.7
Full-time employees (end of quarter)
3,427
3,416
3,416
3,486
3,672
Note: Figures presented may not
sum precisely due to rounding.
1 During the second quarter of
2024, we reclassified certain policy
expenses from Other operating
expenses, net to General and
administrative. Prior period
amounts have been reclassified to
conform to current period
presentation.
Q3 transaction expenses declined 10% Q/Q to $172 million or 15% of net revenue. The Q/Q decline was
primarily driven by lower trading volume and lower miner fees.
Technology & development expenses grew 4% Q/Q to $377 million, and general & administrative expenses
grew 3% Q/Q to $330 million. Both categories of expenses grew primarily due to higher stock-based
compensation, as our expense recognition has historically been non-linear.
Sales and marketing expenses were $165 million, essentially flat Q/Q. Higher USDC rewards (driven by higher
average on-platform balances) were largely offset by lower performance marketing spend given less favorable
marketing conditions throughout the quarter.
Stock-based compensation expense was $248 million.
Our Q3 effective tax rate was negative 10%. Our tax rate was lower than the US statutory rate of 21% primarily
due to deductible stock-based compensation and research and development credits.
Q3 net income was $75 million and was impacted by $121 million in pre-tax losses on our crypto asset
investment portfolio, the vast majority of which were unrealized. These losses were $92 million after reflecting
the tax impact. Adjusted EBITDA was $449 million.
Share Count
Our Q3 fully diluted share count was 285.7 million, up 0.6% Q/Q. This includes 250.3 million common shares
and 35.4 million in dilutive shares.
7
Capital and Liquidity
We ended Q3 with $8.2 billion in $USD resources, which we define as cash & cash equivalents and USDC (net
of USDC lent or pledged as collateral). This represents an increase of $417 million or 5% Q/Q of net
unencumbered liquid resources available to us.
Share Repurchase Program
In October 2024, our board of directors authorized and approved a share repurchase program, which provides
for the repurchase of up to $1.0 billion of our outstanding Class A common stock without expiration. The timing
and amount of any repurchases will depend on market conditions, and any repurchases will be made at our
discretion. This program does not obligate us to repurchase any dollar amount or number of shares of our
Class A common stock, and the program may be modified, suspended, or discontinued at any time.
chart-71d27e03c75741869f4a.gif
*Net of USDC lent or pledged as collateral.
Note: Figures presented may not sum precisely due to rounding.
TOTAL: $8,232M
Total $USD Resources
CORPORATE CASH HELD
AT THIRD PARTY VENUES
$92M
CORPORATE CASH
$1,544M
MONEY MARKET FUNDS AND
GOVERNMENT BONDS
$6,088M
USDC*
$508M
8
q3-resourcexwalk.jpg
Q3 $USD Resources Walk
*As of September 30, 2024, USDC excludes $122M of USDC loaned and $241M of USDC pledged as collateral. As of June 30, 2024, USDC excludes $272M of USDC loaned and $195M
of USDC pledged as collateral.
1 Cash flows due to operating activities, excluding deposits in-transit related to customer fiat activity
2 Crypto asset investment portfolio purchases, net of disposals
3 Fiat loans originated, net of repayment
4 Excludes the net change in customer custodial cash liabilities
5 Cash received for the issuance of common stock upon exercises of stock options and proceeds from the employee stock purchase plan
6 Fiat received as collateral returned, net of collateral received
7 Other includes net changes in operating, investing, and financing USDC activities partially offset by the effect of FX on corporate cash. The financing USDC includes USDC pledged as
collateral on crypto asset borrowings, and adjusts for USDC loaned and USDC pledged as collateral that did not meet the derecognition criteria
We consider our crypto assets for investments and certain crypto assets held as collateral as other liquidity
resources available to us. We intend to hold crypto assets for investment for the long term and only foresee
relying on these assets in a liquidity stress event. As of September 30, 2024, there were no crypto assets held
as collateral, and the fair market value of our crypto assets for investments was $1.3 billion. When including
these crypto assets, total available resources totaled $9.5 billion, up from $9.1 billion at the end of Q2.
Collateralized Arrangements & Financing and Counterparty Risk
We maintained our longstanding commitment to operational and risk excellence in Q3. To date, we have
incurred no significant corporate nor customer fund losses as a result of credit or counterparty risk. At the end
of Q3, we had $714 million in total credit and counterparty risk (excluding banks), stemming from $520 million
in loans to customers, $136 million held at third party venues (including $92 million in unrestricted cash), and
$59 million in collateral posted.
9
In Q3, we continued to make important progress against our goals of driving
Chapter 2
revenue and utility.
Two of our key priorities for 2024 are to drive revenue and drive crypto utility. In Q3, we continued to make
important progress toward both of these goals. We are working to drive revenue by focusing on expanding our
primary revenue streams through things like derivatives, international expansion, custody, and deeper
integration of USDC into the cryptoeconomy. We are driving crypto utility in a number of ways, including
expanding stablecoin adoption beyond trading, the launch of Coinbase Wrapped BTC (cbBTC) to unlock new
ways to use BTC, and improving the speed and efficiency of the network through our L2, Base.
Driving Revenue
Derivatives
In Q3, we made meaningful progress in expanding our derivatives offerings in both the US and abroad. In the
US, Coinbase Derivatives Exchange launched new crypto futures, becoming the only US futures exchange
with margin futures outside of BTC and ETH, including DOGE, SHIB, LNK, DOT, and AVAX. Over the past
quarter we have seen our Retail-friendly gold and oil contracts appeal to over 20% of active Coinbase Financial
Market (CFM) traders. These improvements contributed to CFM onboarding over 100,000 users to date.
Increasing derivatives users is a key area of focus as we have seen that derivatives traders tend to also
engage more with spot products as well. We also continue to scale our Coinbase International Exchange
which, as of Q3, has expanded its offering to 89 perpetual contracts, covering over 90% of global perpetual
futures volumes, up from 83% in Q2.
ETFs
In Q3, the crypto industry experienced another significant milestone when the nine spot Ethereum (ETH) ETF
products launched. Coinbase is proud to serve as the primary custodian for 17 of 20 of the BTC and ETH
ETFs, which continued to help drive native unit growth into custody in Q3.
International Growth
In 2022 and 2023, we expanded into new markets including Singapore, Canada, Australia, and Brazil. We are
pleased to see revenue is growing in these markets, highlighting our focus on high-potential regions.
In Q3, we also saw strong international growth in these markets for Coinbase One. We enhanced our benefits
with Coinbase One boosted USDC rewards, which increased rewards payouts for subscribers in eligible
international markets, including the UK, Singapore, Brazil, and Australia, contributing to higher subscriber
growth.
Building the Blocks of Crypto Utility
Expanding crypto utility requires us to build foundational infrastructure that reduces friction, increases network
capability, and integrates seamlessly into everyday use. In Q3, we continued advancing the building blocks of
utility, including:
Stablecoins
Stablecoins, like USDC. are seeing increasing adoption and expanding daily use cases by providing a secure,
digital alternative to fiat currencies. They’re used for a range of vital financial activities — from cross-border
payments and remittances to offering a stable store of value in countries with volatile fiat currencies and
powering transactions on decentralized finance (DeFi) platforms. Stablecoins have found product market fit,
with global stablecoin volumes reaching $22 trillion YTD in 2024, more than doubling year-over-year.
10
In Q3, we continued to drive the global adoption of stablecoins, a crucial component in the broader crypto
ecosystem.
USDC’s market cap grew by $3.5 billion, or 11%, to $36 billion by the end of Q3, making it the fastest-
growing major USD stablecoin in 2024. Our platform incentives and the deeper integration of USDC
across our products have been contributors, which also led to a more than doubling of USDC assets
on platform (AOP) on our international exchange. Additionally, USDC and EURC became the first
stablecoins compliant with the EU's Markets in Crypto Assets (MiCA) regulatory framework in Q3,
positioning stablecoins for broader adoption under this new regulatory framework in Europe.
In Q3, we launched support for EURC, a leading 1:1 Euro-backed stablecoin, and saw its market cap
nearly double within the quarter to $69 million. This growth was in part fueled by the introduction of
free 1:1 Euro-to-EURC conversions on Coinbase and the native launch of EURC on Base. We hope to
see fiat-backed stablecoins continue to expand, as they provide a trusted, stable bridge between
traditional finance and the cryptoeconomy.
cbBTC
In Q3, Coinbase introduced cbBTC, a new digital asset that allows users to put their Bitcoin to work in DeFi and
other onchain applications. Essentially, cbBTC is a version of Bitcoin that can be used in different financial
services like lending, borrowing, and trading on networks like Ethereum and Base. Each cbBTC is fully backed
by Bitcoin held in Coinbase’s secure custody, in order to ensure that customers’ assets are safe and
transparent. By launching cbBTC, we are unlocking new ways for users to transact with their assets onchain.
Base
In Q3, Base, our Ethereum L2 network, solidified its position as the leader in onchain activity among L2s. Base
is now the #1 L2 in both transactions and total value locked. The number of transactions processed on Base
grew 55% Q/Q in Q3, surpassing all other L2 networks and 4x higher than Ethereum over the last 30 days of
the quarter. Despite this surge in activity, transaction fees remained low, with median fees under $0.01, making
Base an efficient and cost-effective platform for onchain activity. Developer engagement has also continued to
increase on Base in Q3, which is now second only to Ethereum in terms of activity on EVM chains.
Basenames
We launched Basenames to make using Base easier and more intuitive. Just like how email addresses
replaced the need for complex numeric IP addresses in the early days of the internet, Basenames simplify
crypto by allowing users to replace long, hard-to-remember "0x" wallet addresses with simple, personalized
names. This makes sending and receiving transactions much more user-friendly. With 450,000 names already
registered in just the first 2 months since launch, Basenames are helping users connect and engage more
seamlessly within the Base ecosystem. You can find us on base at coin.base.eth.
11
It is clear that crypto has already made its mark as we approach the 2024 US
Chapter 3
Presidential election — and we remain committed to advancing regulatory
clarity.
Upcoming US Elections and Regulatory Landscape
As we approach the 2024 US elections, it’s clear that crypto has already made its mark. With tens of millions of
Americans now owning crypto, including many in key swing states, their voices have been heard. Both
presidential candidates, as well as politicians across the political spectrum, have adopted more favorable
positions toward crypto, a significant shift from previous years. This is evident in the recent bipartisan passage
of pro-crypto legislation, despite opposition from the White House, demonstrating that support for crypto is
gaining momentum.
Looking beyond the elections, we remain committed to advancing regulatory clarity. We will continue to support
organizations like Fairshake, one of the largest non-partisan PACs. We will also continue to invest in policy
efforts, including supporting StandWithCrypto, a grassroots advocacy group that has approximately 1.8 million
crypto advocates, and roughly 500,000 have used StandWithCrypto’s voter center to help them prepare to
vote. Americans deserve clear regulations that protect their rights to own and use crypto, and we won’t stop
until we have frameworks that foster innovation while ensuring consumer protection.
Regardless of the elections’ outcome, we’re optimistic about the future. The growing influence of the crypto
community, combined with bipartisan support in Congress, has made the path to pro-crypto legislation clearer
than ever. We are excited to work with either administration in 2025 and believe the odds for meaningful, pro-
crypto regulation have never been stronger.
Litigation
Our ongoing litigation with the SEC continues as we seek greater regulatory clarity through the courts. As noted
in our previous updates, the district court case continues to be in the discovery phase, which will extend
through Q2 2025. As part of the discovery process, we were pleased that the court ordered the SEC to produce
additional information to use in response to our motion to compel. We remain confident in the strength of our
legal arguments and view the courts as a key avenue to achieving the clarity needed for the broader industry.
No material changes in the case are expected until these discovery phases are completed, and we will
continue to provide updates as appropriate.
sec-litxstages.jpg
12
Q4’24 Outlook
Chapter 4
Coinbase Q4 2024 Outlook
METRIC
OUTLOOK
Subscription and Services Revenue
$505-$580 million
Transaction Expenses
mid-teens as a percentage of net revenue
Dependent on revenue mix
Technology & Development +
General & Administrative Expenses
$690-$730 million
Including ~$210 million in stock-based compensation
Sales and Marketing Expenses
$170-$220 million
Including ~$17 million in stock-based compensation
Transaction Revenue
We estimate October total transaction revenue will be approximately $190 million. As always, we continue to
urge caution in extrapolating these estimated results.
Subscription and Services Revenue
We expect Q4 subscription and services revenue to be within $505-$580 million. While we continue to be
focused on growing native units across staking, custody, and on-platform USDC, our Q4 range reflects certain
headwinds, including an observed 10% decline in the average price of Ethereum in October as compared to
Q3 average and interest rate cuts reflecting market expectations.
Expenses
We expect technology & development and general & administrative expenses to be in the range of $690-$730
million.
In prior years we have used a non-linear expense recognition schedule for annually granted stock-based
compensation. This quarter, we have updated our vesting schedule for new awards to achieve linear expense
recognition. As a result of this update and stock grants we plan to issue in November, we expect a modest Q/Q
decline in stock-based compensation, driven primarily by roll-off of non-recurring multi-year awards. Future
stock-based compensation expenses related to annual grants will be primarily driven by our employee
population rather than our vesting schedule. 
Sales and marketing expenses are expected to be in the range of $170-$220 million, primarily driven by USDC
rewards expense related to higher on platform balances and higher brand spend, partially attributable to our
NBA partnership. As a reminder, our variable marketing costs can fluctuate greatly depending on USDC assets
on platform, market trends, and the opportunities available that meet our customer cost of acquisition targets.
As such, we are continuing to provide a wide range to capture all market conditions.
Webcast Information
We will host a conference call to discuss the results for the third quarter 2024 on October 30, 2024 at 2:30 pm
PT. The live webcast of the call will be available at youtube.com/@coinbase/streams. A replay of the call, as
well as a transcript, will be available on our Investor Relations website at investor.coinbase.com.
13
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are
not limited to, statements regarding our future operating results and financial position, including for the fourth quarter ending
December 31, 2024; our plans with respect to the share repurchase program; anticipated future expenses and investments;
expectations relating to certain of our key financial and operating metrics; our business strategy and plans; expectations relating
to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends
and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and
our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,”
“expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements.
Forward-looking statements are based on management’s expectations, assumptions, and projections based on information
available at the time the statements were made. These forward-looking statements are subject to a number of risks,
uncertainties, and assumptions, including, among others: our ability to successfully execute our business and growth strategy
and generate future profitability; market acceptance of our products and services; our ability to further penetrate our existing
customer base and expand our customer base; our ability to develop new products and services; our ability to expand
internationally; the success of any acquisitions or investments that we make; the effects of increased competition in our markets;
our ability to stay in compliance with applicable laws and regulations; stock price fluctuations; market conditions across the
cryptoeconomy, including crypto asset price volatility; and general market, political, and economic conditions, including interest
rate fluctuations, inflation, instability in the global banking system, economic downturns, and other global events, including
regional wars and conflicts and government shutdowns. It is not possible for our management to predict all risks, nor can we
assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements we may make. In light of these risks,
uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the
forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results
are, or will be included, in our filings we make with the Securities and Exchange Commission (SEC) from time to time, including
our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 15, 2024 and our
Quarterly Report on Form 10-Q for the quarter ended on September 30, 2024 filed with the SEC on October 30, 2024. Except as
required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results
differ materially from those anticipated in the forward-looking statements.
14
Non-GAAP Financial Measure
In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA, a non-GAAP financial performance
measure, is useful information to help investors evaluate our operating performance because it: enables investors to compare
this measure and component adjustments to similar information provided by peer companies and our past financial performance;
provides additional company-specific adjustments for certain items that may be included in income from operations but that we do
not consider to be normal, recurring, operating expenses (or income) necessary to operate our business given our operations,
revenue generating activities, business strategy, industry, and regulatory environment; and provides investors with visibility to a
measure management uses to evaluate our ongoing operations and for internal planning and forecasting purposes. For example:
We believe it is useful to exclude certain non-cash expenses, such as depreciation and amortization and stock-based
compensation, from Adjusted EBITDA because the amounts of such expenses can vary significantly from period to
period and may not directly correlate to the underlying performance of our business operations.
We believe it is useful to exclude certain items that we do not consider to be normal, recurring, cash operating expenses
and therefore, not reflective of our ongoing business operations. For example, we exclude: (i) other (income) expense,
net, as the income and expenses recognized in this line item are not part of our core operating activities and are
considered non-operating activities under GAAP, (ii) gains and losses on crypto assets held for investment (post-
adoption of ASU No. 2023-08) because such investments are considered long-term holdings, we do not plan on
engaging in regular trading of crypto assets, and, as an operating company, our investing activities in crypto are not part
of our revenue generating activities, which are based on transactions on our platform and the sales of subscriptions and
services, and (iii) the impact of our restructurings in 2022 and 2023, which are not related to our normal business
operations.
We believe Adjusted EBITDA is useful to measure a company’s operating performance without regard to items such as
stock-based compensation expense, depreciation and amortization expense, interest expense, other (income) expense,
net, restructurings, and benefit from or provision for income taxes that can vary substantially from company to company
depending upon their financing, capital structures, and the method by which assets were acquired.
Limitations of Adjusted EBITDA
We believe that Adjusted EBITDA may be helpful to investors for the reasons noted above. However, Adjusted EBITDA is
presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in accordance with GAAP. There are a number of limitations related
to Adjusted EBITDA rather than net (loss) income, which is the nearest GAAP equivalent of Adjusted EBITDA. Some of these
limitations are that Adjusted EBITDA excludes:
provision for (benefit from) income taxes;
interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which
reduces cash available to us;
depreciation and intangible assets amortization expense and, although these are non-cash expenses, the assets being
depreciated and amortized may have to be replaced in the future;
stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant
recurring expense for our business and an important part of our compensation strategy;
net gains or losses on our crypto assets held for investment, net, after the adoption of ASU 2023-08;
other (income) expense, net, which represents foreign exchange gains or losses, gains or losses on strategic
investments, net gains on the repurchase of certain of our long-term debt and other non-operating income and expense
activity;
15
non-recurring accrued legal contingencies, settlements, and related costs, which includes non-recurring loss
contingencies recognized for legal related claims against the company;
impairment on crypto assets still held, net, which represents impairment on crypto assets still held and is a non-cash
expense, prior to the adoption of ASU 2023-08; and
the impact of restructuring, which is not related to normal operations but impacted our results in 2023.
In addition, other companies, including companies in our industry, may calculate Adjusted EBITDA differently or may use other
measures to evaluate their performance, all of which could reduce the usefulness of our disclosure of Adjusted EBITDA as a tool
for comparison. For more information, including a reconciliation of Adjusted EBITDA to net (loss) income, the most directly
comparable financial measure stated in accordance with GAAP, please see the reconciliation of GAAP to non-GAAP results table
in this shareholder letter. Investors are encouraged to review the related GAAP financial measure and the reconciliation of
Adjusted EBITDA to net (loss) income, and not to rely on any single financial measure to evaluate our business.
We have not reconciled our Adjusted EBITDA outlook to net (loss) income because certain items that impact net (loss) income
are uncertain or out of our control and cannot be reasonably predicted. For example, stock-based compensation is impacted by
the future fair market value of our Class A common stock and other factors, all of which are difficult to predict, subject to frequent
change, or not within our control. The actual amount of these expenses during 2024 will have a significant impact on our future
GAAP financial results. Accordingly, a reconciliation of Adjusted EBITDA outlook to net (loss) income is not available without
unreasonable effort.
Revised Definition of Adjusted EBITDA
During the first quarter of 2024, we revised our definition of Adjusted EBITDA as follows and recast prior periods for
comparability:
to adjust for other (income) expense, net in total, as the entire line item represents non-operating activity, and as a
majority of the activity recorded in other (income) expense, net had been included in the calculation of Adjusted EBITDA
previously in separate rows while this combined presentation is more streamlined and easily reconciled to our
condensed consolidated statements of operations;
to revise our definition of Adjusted EBITDA to remove the adjustment for crypto asset borrowing costs on Prime
Financing, as even though these costs are akin to interest expense on debt, we believe they represent normal,
recurring, operating expenses necessary to expand and grow Prime Financing; and
to revise our definition of Adjusted EBITDA to change what is adjusted with respect to gains and losses on crypto assets
in connection with the adoption of ASU 2023-08, adjusting post-adoption only for gains and losses on crypto assets held
for investment, as they do not represent normal, recurring, operating expenses (or income) necessary to operate our
business.
16
Coinbase Global, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(unaudited)
September 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents .............................................................................................
$7,723,806
$5,139,351
Restricted cash and cash equivalents ..........................................................................
31,881
22,992
Customer custodial funds ...............................................................................................
4,035,045
4,570,845
Safeguarding customer crypto assets ...........................................................................
272,669,307
192,583,060
USDC .................................................................................................................................
871,425
576,028
Loan receivables ..............................................................................................................
398,239
193,425
Crypto assets borrowed ..................................................................................................
252,885
45,212
Accounts receivable, net .................................................................................................
187,004
168,290
Other current assets ........................................................................................................
255,975
286,643
Total current assets .....................................................................................................
286,425,567
203,585,846
Crypto assets held for investment .......................................................................................
1,260,718
330,610
Deferred tax assets ...............................................................................................................
1,032,959
1,272,233
Goodwill ...................................................................................................................................
1,139,670
1,139,670
Other non-current assets ......................................................................................................
699,694
654,594
Total assets .............................................................................................................
$290,558,608
$206,982,953
Liabilities and Stockholders’ Equity
Current liabilities:
Customer custodial cash liabilities .................................................................................
$4,035,045
$4,570,845
Safeguarding customer crypto liabilities .......................................................................
272,669,307
192,583,060
Crypto asset borrowings .................................................................................................
265,259
62,980
Obligation to return collateral .........................................................................................
118,224
1,063
Accrued expenses and other current liabilities ............................................................
500,603
496,183
Total current liabilities .................................................................................................
277,588,438
197,714,131
Long-term debt .......................................................................................................................
4,231,047
2,979,957
Other non-current liabilities ..................................................................................................
11,001
7,216
Total liabilities ...............................................................................................................
281,830,486
200,701,304
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value; 500,000 shares authorized and zero
shares issued and outstanding at each of September 30, 2024 and December
31, 2023 .............................................................................................................................
Class A common stock, $0.00001 par value; 10,000,000 shares authorized at
September 30, 2024 and December 31, 2023; 204,850 and 195,192 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively .......................................................................................................................
2
2
Class B common stock, $0.00001 par value; 500,000 shares authorized at
September 30, 2024 and December 31, 2023; 45,440 and 46,856 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively .......................................................................................................................
Additional paid-in capital .................................................................................................
5,087,238
4,491,571
Accumulated other comprehensive loss .......................................................................
(28,843)
(30,270)
Retained earnings ............................................................................................................
3,669,725
1,820,346
Total stockholders’ equity ...........................................................................................
8,728,122
6,281,649
Total liabilities and stockholders’ equity .............................................................
$290,558,608
$206,982,953
17
Coinbase Global, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenue:
Net revenue .....................................................
$1,128,597
$623,004
$4,096,216
$2,021,902
Other revenue .................................................
76,596
51,144
196,175
132,686
Total revenue .............................................
1,205,193
674,148
4,292,391
2,154,588
Operating expenses:
Transaction expense ......................................
171,781
90,577
580,665
295,146
Technology and development .......................
377,440
322,756
1,099,561
1,001,454
Sales and marketing ......................................
164,770
78,178
428,617
226,007
General and administrative ...........................
330,387
252,630
937,738
760,379
Gains on crypto assets held for
operations, net ................................................
(142)
(55,484)
Crypto asset impairment, net .......................
7,180
17,089
Restructuring ...................................................
(860)
142,594
Other operating (income) expense, net ......
(8,556)
3,512
28,203
(10,806)
Total operating expenses .........................
1,035,680
753,973
3,019,300
2,431,863
Operating income (loss) ...........................
169,513
(79,825)
1,273,091
(277,275)
Interest expense ..................................................
20,530
20,821
60,108
64,029
Losses (gains) on crypto assets held for
investment, net .....................................................
120,507
(210,902)
Other income, net ................................................
(40,105)
(135,307)
(21,883)
(131,606)
Income (loss) before income taxes ........
68,581
34,661
1,445,768
(209,698)
(Benefit from) provision for income taxes ........
(6,914)
36,926
157,878
(31,132)
Net income (loss) ......................................
$75,495
$(2,265)
$1,287,890
$(178,566)
Net income (loss) attributable to common
stockholders:
Basic .................................................................
$75,455
$(2,265)
$1,287,106
$(178,566)
Diluted ..............................................................
$75,459
$(2,265)
$1,296,949
$(178,566)
Net income (loss) per share:
Basic .................................................................
$0.30
$(0.01)
$5.23
$(0.76)
Diluted ..............................................................
$0.28
$(0.01)
$4.76
$(0.76)
Weighted-average shares of common stock
used to compute net income (loss) per share:
Basic .................................................................
248,834
237,270
245,986
234,479
Diluted ..............................................................
267,440
237,270
272,239
234,479
Stock-based Compensation Expense
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Technology and development ........................
$155,411
$130,776
$428,863
$376,941
Sales and marketing .......................................
18,720
16,556
52,034
45,695
General and administrative ............................
74,285
70,821
209,957
194,149
Restructuring ....................................................
84,042
Total ..............................................................
$248,416
$218,153
$690,854
$700,827
18
Coinbase Global, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Nine Months Ended September 30,
2024
2023
Cash flows from operating activities
Net income (loss) ................................................................................................................
$1,287,890
$(178,566)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation and amortization .....................................................................................
94,523
110,157
Stock-based compensation expense .........................................................................
690,854
616,785
Deferred income taxes ..................................................................................................
61,075
(50,217)
Non-cash lease expense ..............................................................................................
8,571
37,271
Gains on crypto assets held for operations, net .......................................................
(55,484)
Gains on crypto assets held for investment, net .......................................................
(210,902)
Gain on extinguishment of long-term debt, net .........................................................
(99,446)
Stock-based compensation expense recognized in relation to restructuring .......
84,042
Realized loss on crypto futures contract ....................................................................
43,339
Gains on crypto assets held, net (prior to ASU 2023-08) ........................................
(110,610)
Crypto asset impairment expense (prior to ASU 2023-08) .....................................
77,151
Crypto assets received as revenue (prior to ASU 2023-08) ...................................
(299,304)
Crypto asset payments for expenses (prior to ASU 2023-08) ................................
185,149
Other operating activities, net ......................................................................................
38,315
(2,164)
Net changes in operating assets and liabilities .........................................................
(322,616)
514,550
Net cash provided by operating activities ..........................................................................
1,592,226
928,137
Cash flows from investing activities
Fiat loans originated .........................................................................................................
(1,270,063)
(348,252)
Proceeds from repayment of fiat loans .........................................................................
1,075,000
242,384
Purchase of crypto assets held for investment ............................................................
(18,486)
Sale of crypto assets held for investment .....................................................................
52,586
Settlement of crypto futures contract ............................................................................
(43,339)
Purchase of crypto assets held (prior to ASU 2023-08) .............................................
(150,827)
Sale of crypto assets held (prior to ASU 2023-08) ......................................................
265,042
Other investing activities, net .........................................................................................
(72,006)
(50,125)
Net cash used in investing activities ...................................................................................
(232,969)
(85,117)
Cash flows from financing activities
Issuance of common stock upon exercise of stock options, net of repurchases ...
80,222
27,653
Taxes paid related to net share settlement of equity awards ....................................
(117,225)
(183,962)
Customer custodial cash liabilities .................................................................................
(550,776)
(1,349,666)
Issuance of convertible senior notes, net .....................................................................
1,246,025
Purchases of capped calls ..............................................................................................
(104,110)
Repurchases of senior and convertible notes .............................................................
(222,664)
Fiat received as collateral ...............................................................................................
525,699
5,324
Fiat received as collateral returned ...............................................................................
(410,438)
(4,585)
Other financing activities, net .........................................................................................
13,266
(6,228)
Net cash provided by (used in) financing activities ..........................................................
682,663
(1,734,128)
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash
equivalents ..............................................................................................................................
2,041,920
(891,108)
Effect of exchange rates on cash, cash equivalents, and restricted cash and cash
equivalents ..............................................................................................................................
19,664
(27,353)
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of
period .......................................................................................................................................
9,555,429
9,429,646
Cash, cash equivalents, and restricted cash and cash equivalents, end of period ....
$11,617,013
$8,511,185
Supplemental disclosure of cash flow information
Cash paid during the period for interest .......................................................................
$33,424
$42,913
Cash paid during the period for Income taxes .............................................................
$113,107
$19,676
19
Supplemental Disclosures of Cash Flow Information
(unaudited)
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Nine Months Ended September 30,
2024
2023
USDC ..............................................................................................................................
$(294,104)
$464,728
Accounts receivable, net ..............................................................................................
(37,759)
81,317
Customer custodial funds in transit ............................................................................
4,039
(28,055)
Income taxes, net ..........................................................................................................
(19,341)
(157)
Other current and non-current assets ........................................................................
(7,106)
21,244
Other current and non-current liabilities ....................................................................
31,655
(24,527)
Net changes in operating assets and liabilities ...................................................
$(322,616)
$514,550
Reconciliation of cash, cash equivalents, and restricted cash and cash equivalents (in thousands):
September 30,
2024
2023
Cash and cash equivalents .........................................................................................
$7,723,806
$5,100,799
Restricted cash and cash equivalents .......................................................................
31,881
26,319
Customer custodial cash and cash equivalents .......................................................
3,861,326
3,384,067
Total cash, cash equivalents, and restricted cash and cash equivalents .......
$11,617,013
$8,511,185
Supplemental schedule of non-cash investing and financing activities were as follows (in thousands):
Nine Months Ended September 30,
2024
2023
Crypto asset loan receivables originated ..................................................................
$1,244,113
$409,027
Crypto asset loan receivables repaid .........................................................................
1,230,544
446,095
Cumulative-effect adjustment due to the adoption of ASU 2023-08 .....................
561,489
Non-cash assets received as collateral returned .....................................................
495,574
237,681
Non-cash assets received as collateral .....................................................................
465,063
242,883
Crypto assets borrowed ...............................................................................................
353,325
399,460
Crypto assets borrowed repaid with crypto assets ..................................................
176,990
437,254
Non-cash assets pledged as collateral ......................................................................
75,893
128,587
Non-cash assets pledged as collateral returned ......................................................
69,245
140,818
Non-cash consideration paid for business combinations .......................................
51,494
Crypto assets received on settlement of futures contract ......................................
48,491
20
Reconciliation of Net (Loss) Income to Adjusted EBITDA
(unaudited)
Q3’23
Q4’23
Q1’24
Q2’24
Q3’24
(in thousands)
Net (loss) income ........................................................
$(2,265)
$273,437
$1,176,245
$36,150
$75,495
Adjusted to exclude the following:
Provision for (benefit from) income taxes ........
36,926
(140,584)
261,179
(96,387)
(6,914)
Interest expense ..................................................
20,821
18,737
19,071
20,507
20,530
Depreciation and amortization ..........................
31,967
29,485
29,327
34,501
30,695
Stock-based compensation ...............................
218,153
163,883
224,504
217,934
248,416
(Gains) losses on crypto assets held for
investment, net (post-adoption of ASU
2023-08) ................................................................
(650,429)
319,020
120,507
Other (income) expense, net(1) ..........................
(135,307)
(35,977)
(45,605)
63,827
(40,105)
Non-recurring accrued legal contingencies,
settlements, and related costs ..........................
15,000
Impairment on crypto assets still held, net
(pre-adoption of ASU 2023-08) .........................
8,897
Restructuring ........................................................
(860)
Adjusted EBITDA ........................................................
$178,332
$323,981
$1,014,292
$595,552
$448,624
Revised definition no longer adjusts for:
Crypto asset borrowing costs ............................
$706
$1,362
Other impairment expense ................................
1,956
8,724
Revised definition newly adjusts for:
Additional other income, net(2) ...........................
(50)
(28,961)
Adjusted EBITDA, previous definition ......................
$180,944
$305,106
Note:  Figures presented above may not sum precisely due to rounding.
(1)See Results of Operations—Comparison of the three and nine months ended September 30, 2024 and 2023—Other
income, net of the Quarterly Report on Form 10-Q for the quarter ended on September 30, 2024 filed with the SEC on
October 30, 2024 for additional details.
(2)Represents the portion of Other (income) expense, net that was not previously included as an adjustment to arrive at
Adjusted EBITDA.
v3.24.3
Cover Page
Oct. 30, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 30, 2024
Entity Registrant Name Coinbase Global, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40289
Entity Tax Identification Number 46-4707224
Entity Central Index Key 0001679788
Amendment Flag false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A common stock, $0.00001 par value
Trading Symbol COIN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Address, State or Province NY
Entity Address, City or Town New York
Entity Address, Postal Zip Code 10010
Entity Address, Address Line Two Suite 2400
Entity Address, Address Line One One Madison Avenue

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