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Coinbase posts surprise quarterly loss as crypto trading volumes slump

The exchange reported $1.22 billion in second-quarter revenue, down 14% quarter over quarter, and said spot trading volume fell more than 20% as price moves and volatility eased.

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Coinbase reported second-quarter revenue of $1.22 billion, down 14% from the prior quarter and 19% year over year, alongside a net loss of $359 million, a turnaround from profit expectations. Decrypt said the company’s results missed Wall Street targets, with revenue coming in below the $1.29 billion expected and the loss of $1.36 per share worse than a roughly break-even model.

The miss reflected weaker trading activity, with total crypto spot trading volume falling more than 20% from the prior quarter. Transaction revenue dropped 21% to $599 million, and Decrypt noted subscription and services revenue also missed even though it is less dependent on trading.

Coinbase attributed part of the shortfall to late-closing USDC commercial agreements and lower staking revenue tied to falling prices. Still, Decrypt highlighted that stablecoin revenue reached $292 million, with average USDC held on Coinbase products hitting a record $20 billion, more than 30% of all USDC in circulation.

Looking ahead, Decrypt reported Coinbase’s prediction-market revenue more than doubled quarter over quarter, up 106%, crossing a $100 million annualized run rate, and said 88% of net revenue comes from sources other than Bitcoin spot trading. The company also held $8.6 billion in cash, maintained a 14-quarter streak of positive adjusted EBITDA, and lowered its full-year expense outlook, while after-hours trading saw the COIN stock fall roughly 5%.

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