Catenaa, Friday, August 01, 2025- Coinbase Global stock fell by over 15% on Friday after the largest US crypto exchange reported lower-than-estimated second-quarter revenue amid a drop in digital-asset market volatility.
While revenue increased 3.3% year over year to $1.5 billion, that was still lower than analysts’ estimates of $1.59 billion and down from $2 billion in the first three months of the year.
Net income jumped to $1.43 billion after an unrealized gain to account for the increase in the value of its crypto holdings and from strategic investments such as Coinbase’s minority stake in Circle Internet Group Inc.
Coinbase’s shares fell over 15% or by 59 points to $319 on Friday. The stock has rallied about 30%% so far this year, reaching an all-time closing high of $419.78 on July 18.
Spot trading volumes were down both globally and in the US “against a market backdrop where we saw average crypto market capitalization approximately flat Q/Q,” the company said in a shareholder letter Thursday.
Brian Armstrong, the Co-Founder and CEO of Coinbase, has been diversifying into new businesses and services to lessen the correlation of revenue to crypto trading volume.
Coinbase was added to the Standard & Poor’s 500 Index in May, the first crypto company to be included in the bellwether index.
Coinbase is looking to expand further, and said it’s actively building and testing trading traditional stocks, prediction markets, FX, treasuries, commodities, and other assets. Rivals like Kraken have already made equities available to some customers.
“We’ve always believed that every asset class will move on-chain,” Alesia Haas, Coinbase’s CFO, said in an interview on Thursday. “We are now at an inflexion point,” in terms of technology being ready, and increased regulatory clarity.
Haas said equities could be made available to customers either through a partnership with a broker or via linking shares to a blockchain.
The company recorded $307 million in expenses related to the incident in the second quarter.
The firm has benefited from a revenue-sharing agreement with Circle, the US stablecoin issuer that went public in June. During the recent quarter, stablecoin revenue rose to $332 million.
