Morning Minute: Coinbase Posts Surprise Loss as Crypto Trading Dries Up
Coinbase reported Q2 revenue of $1.22B, down 14% quarter over quarter and 19% year over year, with a $359M net loss. Results missed expectations as crypto spot trading volume fell more than 20% amid weaker prices and low volatility, cutting transaction revenue to $599M. Subscription and services revenue also disappointed, hurt by delayed USDC deals and lower staking revenue. Positives included $292M in stablecoin revenue, a record $20B average USDC held on Coinbase products, prediction-market revenue up 106% quarter over quarter to a $100M+ annualized run rate, and market share rising to 10.3%. Coinbase ended with $8.6B in cash and lowered full-year expense guidance. Despite diversification, the business still remains highly exposed to crypto trading cycles.
