Morning Minute: Coinbase Reports $667 Million Loss Amid Bitcoin Dive
Coinbase reported disappointing Q4 2025 earnings, with revenue at $1.78 billion (down 22% year-over-year and below expectations), and a net loss of $667 million after a previous year’s profit. Losses were driven by a $718 million unrealized writedown on its crypto portfolio and $395 million in strategic investment losses, including in Circle. Transaction revenue declined 6% quarter-over-quarter and 37% compared to Q4 2024, and operating expenses rose 9% to $1.5 billion. Stock-based compensation added $250 million, while CEO Brian Armstrong and CFO Alesia Haas sold significant personal shareholdings. The COIN stock saw major volatility, dropping before and after earnings but later rebounding. Despite continued investments in infrastructure—like agentic wallets and new trading products—Coinbase remains heavily reliant on trading in a down crypto market. The Q1 2026 outlook calls for lower subscription and transaction revenues. While Coinbase is positioning itself for long-term growth in crypto financial services, current results reflect the persistent challenges of a bearish market.
