Cryptocurrency exchange Coinbase suffered losses of $ 667 million amid the fall of the crypto market

Coinbase reported a net loss of $ 667 million in the fourth quarter of 2025. After the publication of the financial report, the company’s shares under the COIN ticker updated a two-year low on the post-market. The document states that the key factor behind the loss was a negative revaluation of the crypto portfolio and strategic investments.

Coinbase’s total revenue decreased by 5% compared to the previous quarter to $ 1.8 billion. Revenues from operations decreased by 6% to $ 983 million, while revenues from subscriptions and services decreased by 3% to $ 727 million. For comparison, in the third quarter, the company ended the period with a profit due to high activity in the Ethereum network.

The financial performance was affected by a large-scale correction at the end of the year: the crypto market capitalization decreased by 25%, or about $ 1.1 trillion. According to Coinbase, the decline continued in early 2026, when the industry lost another $ 700 billion. The company’s analysts called it a «reset» that should improve the market before the new cycle.

In the revenue structure, revenue from retail operations decreased by 13% due to the transition of users to Advanced Trading tools with lower fees and the growing popularity of the Coinbase One subscription. At the same time, the institutional segment showed growth due to derivatives trading, enhanced by the integration of the Deribit platform. The positive dynamics of stablecoins was also noted: revenue increased by 3% to $ 364 million due to record average USDC balances on the platform.

After the report was released, COIN shares initially dropped by 4% and touched a low of $ 135, but later recovered, adding 4%. The company reported that it had $ 11.3 billion in cash and cash equivalents at the end of the year, continued its buyback program, and bought back $ 1.7 billion worth of shares as of early February. The pressure on the stock was attributed to the sale of $ 500 million worth of shares by CEO Brian Armstrong and the general weakness of the sector.

Coinbase is also developing the concept of a «universal platform» Everything Exchange, with priorities including the integration of equity and ETF trading, the launch of prediction markets in the US, and the development of derivatives and payment infrastructure. In the first half of this quarter, revenues from operations amounted to about $ 420 million, although the company warned that due to market volatility, these results should not be directly transferred to the entire period.