Coinbase sinks 5% after missing second quarter revenue estimates

Coinbase sinks 5% after missing second quarter revenue estimates

In a post on X, CEO Brian Armstrong pointed to the company’s expanding businesses beyond spot trading, including stablecoins, Base and prediction markets, noting that Coinbase reached a record 10.3% share of global crypto trading volume during the quarter.

CFO Alesia Haas struck a more measured tone, saying crypto market conditions were challenging as industry spot trading volumes fell more than 20% and the total crypto market capitalization declined by double digits. She said those conditions contributed to a 14% quarter-over-quarter decline in Coinbase’s total revenue.

Several Wall Street firms lowered estimates ahead of earnings and trimmed EBITDA forecasts as lower crypto prices weighed on institutional trading, blockchain rewards and retail activity.

Investors remained focused on Coinbase’s efforts to reduce its dependence on transaction fees.

Subscription and services revenue, which includes USDC interest income, staking, custody, Coinbase One memberships and institutional services, has become a key measure of whether the company can generate more stable revenue through crypto market cycles.

Analysts also watched for updates on newer businesses, including derivatives, prediction markets and Base, Coinbase’s Ethereum layer-2 network.

The company will host a call with investors at 5pm E.T.