Coinbase posted a $359M net loss on $1.22B revenue as crypto volumes slumped. Transaction revenue fell 21%. Stablecoin and prediction-market revenue surged, and market share hit a record.
Coinbase Global reported a net loss of $359 million for the second quarter, missing Wall Street estimates by a wide margin as crypto trading volumes dried up. Revenue came in at $1.22 billion, down 14% from the first quarter and 19% from a year earlier. Analysts had modeled roughly $1.29 billion and a break-even result. COIN stock fell about 5% in after-hours trading.
The miss was broad. Transaction revenue dropped 21% quarter over quarter to $599 million, dragged down by a more than 20% decline in total crypto spot trading volume. Prices slumped and volatility hit multi-year lows during the period, the company said. Subscription and services revenue also missed; Coinbase blamed late-closing USDC commercial agreements and lower staking revenue from falling token prices.
Several segments of the business still showed growth. 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. Prediction-market revenue more than doubled quarter over quarter, up 106%, and crossed a $100 million annualized run rate. Coinbase’s share of global crypto trading volume hit a record 10.3%, its third straight quarter of market-share gains. The company said 88% of net revenue now comes from sources other than Bitcoin spot trading, up from 45% in 2020.
Coinbase ended the quarter with $8.6 billion in cash and extended its streak of positive adjusted EBITDA to 14 quarters. It also lowered its full-year expense outlook.
The results stand in contrast to Robinhood Markets, which posted record profit in the same period despite a similar drop in crypto transaction revenue. Robinhood’s options and equities business helped offset the decline, highlighting Coinbase’s heavier reliance on the trading cycle it is trying to diversify away from.
For the third quarter, Coinbase offered soft guidance. July trading volumes were below the second-quarter average, and volatility has remained low, the company said.
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