On Wednesday, Coinbase Global Inc. (NASDAQ: COIN) released its Q3 2024 financial results, revealing a challenging quarter marked by missed revenue and earnings expectations. The cryptocurrency exchange reported a total revenue of $1.2 billion, slightly below the $1.26 billion forecasted by Wall Street analysts, according to an LSEG survey. Earnings per share (EPS) reached 30 cents, which also fell short of the predicted 41 cents.

In terms of revenue breakdown, Coinbase’s transaction revenue dropped to $573 million, a 27% decline compared to Q2, reflecting lower trading volumes and the recent crypto market turbulence. Revenue from subscriptions and services, which includes staking and custody services, decreased by 7% to $556 million, largely influenced by lower crypto asset values despite some growth in unit numbers within these services. On the positive side, Coinbase managed to trim operating expenses by 6%, bringing them to just over $1 billion, primarily through reduced transaction expenses.

The quarter also saw Coinbase fortifying its liquidity, ending with $8.2 billion in available capital—a $417 million increase over the previous quarter. Additionally, the board authorized a $1 billion share repurchase program to enhance shareholder returns. Amid this, Coinbase emphasized its focus on regulatory clarity in the U.S., especially ahead of the upcoming elections, underscoring its role in advocating for clear crypto policies.

Coinbase’s Base network, a layer-2 blockchain solution, has shown strong growth, ranking as one of the top layer-2 networks by transaction volume. This, along with ongoing stablecoin integrations, reflects Coinbase’s strategic focus on expanding beyond trading revenue to create a more diversified crypto ecosystem.

Coinbase’s stock closed 3.61% down on Wednesday at $211.74, followed by a 4.84% decline to $201.50 in after-hours trading.