Coinbase’s first-quarter earnings, released on May 8, revealed a 10% dip in total revenue to $2 billion, falling short of industry expectations by 4.1% amid sluggish trading activity and a broader market cooldown.
Net income took a major hit, plunging 95% quarter-over-quarter to $66 million, down from $1.29 billion in Q4, mainly due to a $596 million unrealized loss on its crypto holdings. Still, the exchange’s earnings per share of $1.94 slightly outperformed the Zacks Consensus Estimate of $1.85.
Transaction revenue dropped nearly 19% to $1.26 billion, and trading volumes followed suit with a 10.5% fall to $393 billion. The company linked the slowdown partly to a sharp decline in global crypto market capitalization, which tariffs imposed by the Trump administration reportedly impacted.
In contrast, Coinbase’s subscription and services revenue climbed 8.9% to $698.1 million, buoyed by strong stablecoin-related income.
While overall figures pointed to a slowdown, Coinbase reported strategic gains elsewhere. The exchange said it captured more market share in spot and derivatives trading globally, with expansion into emerging markets like Argentina and India bolstered by key regulatory approvals.
Coinbase also celebrated a major legal victory, calling the dismissal of its case with the U.S. Securities and Exchange Commission a milestone for regulatory clarity and innovation-driven policy.
Capping off the day’s announcements was Coinbase’s blockbuster $2.9 billion acquisition of Deribit, one of the largest crypto derivatives platforms. The biggest corporate acquisition in crypto history significantly deepened Coinbase’s reach in the derivatives market, previously limited to its Bermuda-based operations.
Deribit processed over $1 trillion in trades during 2024 and holds roughly $30 billion in open interest, according to Coinbase, signalling a major leap in the firm’s derivatives ambitions.
Recently, Coinbase launched a bold new payments protocol called x402, designed to facilitate instant stablecoin transactions directly over the internet via HTTP, setting the stage for an autonomous, AI-driven digital economy.
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