Coinbase spent 5 years building a life raft away from Bitcoin and still managed to lose $359M
Coinbase’s second quarter showed progress away from dependence on Bitcoin spot trading, but not a full escape from crypto market cycles. Bitcoin spot trading made up about 12% of net revenue, down from 55% in Q2 2020, while subscription and services revenue rose to $555 million from $6 million. Even so, the company still posted a $359.5 million GAAP net loss and $1.22 billion in total revenue, down 14%. Diversification is real: derivatives, stablecoins, custody, staking, lending, prediction markets, and Base are now meaningful businesses. Derivatives were a standout, with volume holding up and market share at a record. Prediction markets also surged. But many of these lines still depend on trading activity, asset prices, volatility, and balances. Stablecoin revenue fell despite record USDC holdings, and Base usage grew faster than monetization. Cost cuts helped, with adjusted expenses down 9% and workforce reduced. Coinbase has built multiple revenue streams, but they remain tied to the crypto cycle.
