Coinbase (COIN) reported a mixed third quarter, with revenue of $1.20 billion falling short of the $1.233 billion analysts had expected, according to company filings. The miss came as the exchange's user base contracted and as its shares slumped roughly 15% on October 30 amid a broad crypto sell-off triggered by a major security breach at Binance.

Subscription and services revenue fared better, reaching $570 million. While Coinbase remains heavily tied to trading activity, its recurring income continues to grow, offering a steadier counterweight to trading-driven revenue.

Users decline, but volume share keeps rising

Monthly Transacting Users fell to 7.4 million, down from 9.3 million a year earlier. On its earnings call, Coinbase blamed overall market conditions for the drop. The company's share of crypto trading volume, however, rose to 10.7% — the fourth straight quarter of gains — suggesting it is winning business even as the broader market quiets.

Adjusted EBITDA, a non-GAAP profitability measure, came in at $332.9 million, extending Coinbase's run to 15 straight profitable quarters on that measure. The company's prediction markets business passed $200 million in annualized revenue, and the Coinbase One subscription program hit a record number of subscribers.

Coinbase adds 643 Bitcoin to its balance sheet

Coinbase also disclosed that it purchased 643 Bitcoin worth $1.5 billion for its balance sheet during the quarter.

JUST IN: Coinbase disclosed buying 643 Bitcoin worth $1.5 billion for its balance sheet in Q3 pic.twitter.com/5BYdrwLCJN — Bitcoin Magazine (@BitcoinMagazine) October 30, 2026

Coinbase CEO preps share sales

Separately, filings reported on October 30 show CEO Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. Armstrong adopted the plan in August under SEC Rule 10b5-1, which allows executives to schedule sales ahead of time — a structure designed to reduce concerns about insiders trading on material nonpublic information. The sales could run from November 16 through October 2027, subject to stock price conditions, giving investors a defined window over which to track disclosed insider selling. Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the total to about 13.6 million shares.

This is not new territory for Armstrong. VanEck analyst Matthew Sigel previously tracked about $545.7 million in sales by the CEO over nine months, starting in April 2025. Armstrong has said these sales are part of his risk management, not a signal about the company.

Coinbase stock slumps nearly 15%

Coinbase shares (COIN) fell about 15% on October 30, but not necessarily due to the earnings report. Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, making it the largest crypto theft on record. Around $3 billion in assets has been frozen so far, with industry partners assisting in the freezes.

The hackers are allegedly linked to North Korea, though Binance has not attributed the attack to any group. The exchange says it has found no evidence of a leaked wallet private key.

Binance says it has $6.34 billion in reserves available to cover losses. Deposits were unaffected, and the company expects to resume withdrawals within 48 hours. Figures remain preliminary, and estimates vary slightly across outlets — leaving room for both the loss total and the frozen-assets figure to be revised as more information is confirmed.

The market reacted quickly. Bitcoin fell roughly 4.5% to below $77,000. Shares of Strategy (MSTR) fell nearly 10% on the day, while Strive (ASST) shares dropped more than 12% at times. Coinbase stock is down over 55% on the year.

Source: Coinbase (COIN) Misses Revenue Estimates as Users Fall, Armstrong Sets Up New Share Sales — Bitcoin Magazine, written by Micah Zimmerman.