The company posted earnings of 28 cents per share, a recovery from a loss a year prior, but still missed the projected EPS of 45 cents.

Coinbase reported third-quarter net revenue of $1.1 billion, falling short of its forecast and consensus estimates, resulting in a 2% drop in stock price to $207.50.

Despite the revenue miss, total transaction revenue surged to $572.5 million, marking a remarkable 98% increase year-over-year.

Regulatory clarity is a key focus for Coinbase, as the company advocates for clearer legislation to enhance its operational capabilities and growth opportunities.

With the upcoming 2024 elections, Coinbase is optimistic about pro-crypto legislation that could further support the industry.

Despite facing strong competition, Coinbase remains the largest cryptocurrency exchange, holding over 800,000 Bitcoin in supply.

Coinbase's Ethereum-based layer two scaling solution, Base, has seen substantial growth, with over $2.5 billion in total value locked and a 55% increase in transactions.

In a strategic move, Coinbase announced a $1 billion stock buyback program, supported by a $400 million increase in its cash resources.

The cryptocurrency market has been sluggish in 2024, with Bitcoin prices fluctuating between $55,000 and $70,000 as investors await election developments.

Looking ahead, Coinbase projects subscription and services revenue for the fourth quarter to range between $505 million and $580 million.

The estimate revisions for Coinbase are mixed, leading to a Zacks Rank of #3 (Hold), indicating expected performance in line with the market.

Institutional interest in Coinbase is on the rise, as it becomes a significant component of various equity indices, which bodes well for its stock performance.