Coinbase recently reported that it sold 12,652 ether, generating approximately $25 million in transaction volume during the previous quarter. The company noted that ETH is being evaluated for both investment and operational purposes, indicating that the prices from the last period were about twice the current levels.
Quarterly Trading Activities
Researcher Geoffrey Kendrick analyzed Coinbase’s report, revealing net purchases at lower average prices (around $2,500) in the third quarter. Conversely, the fourth quarter saw net sales as prices rose to around $4,000.
Geoffrey Kendrick: “Buying at low prices and selling at high prices reflects a risk-mitigating profit-maximizing approach.”
Operational and Investment Use
Coinbase stated that it primarily holds ETH for long-term investments and operational expenses. The company’s ETH revenue is derived from transaction fees associated with the Ethereum 
$3,139 Layer-2 infrastructure, Base.
Official: “Base generates ETH from transaction fees; these assets are used for long-term investment or operational expenses.”
Evaluations over three quarters showed net ETH sales of 1,558 units, occurring under strategic trading operations. The timing of these transactions appears to be carefully planned in response to market fluctuations.
Additionally, Coinbase emphasized that the assets held for investment purposes are not part of regular trading, and indicated a 20% increase in ETH holdings throughout 2024.
Official: “Our crypto assets are held for long-term investment; we are not engaged in regular trading activities.”
Addressing previous speculation, a member of the Base team highlighted that the amount of ETH accrued by the company is more than double what Base has obtained, thereby rejecting rumors.
Base Team Member: “More than $300 million worth of ETH has been accumulated.”
Coinbase’s trading activities are evaluated within the framework of market adaptation and risk management strategies. This report provides insights into the uses of ETH for both investment and operational purposes, clarifying the company’s strategic approaches.
