Key facts
- Coinbase reported a Q2 net loss of $359 million, missing analyst expectations.
- Second-quarter revenue was $1.22 billion, down 14% from the previous quarter.
- Crypto spot trading volume decreased by over 20% in Q2.
- Transaction revenue fell 21% to $599 million.
- Stablecoin revenue reached $292 million.
- A Coldcard exploit resulted in $38 million in Bitcoin losses.
Coinbase reported a surprise net loss of $359 million for the second quarter, missing Wall Street expectations as crypto trading volume declined significantly. Revenue fell 14% from the previous quarter to $1.22 billion, dragged down by a more than 20% drop in crypto spot trading volume and a 21% decrease in transaction revenue.
Despite the trading slump, Coinbase's share of global crypto trading volume reached a record 10.3%. The company highlighted growth in stablecoin revenue, which hit $292 million, and a doubling of prediction-market revenue to an annualized run rate of $100 million. Coinbase also reported holding $8.6 billion in cash and lowered its full-year expense outlook.
In other crypto news, Bitcoin ETFs saw $233 million in net inflows, while Ethereum ETFs had $13 million in inflows. Separately, a flaw in Coldcard's firmware led to approximately $38 million in Bitcoin losses from about 500 wallets. The New York Attorney General filed a petition to shut down the prediction market Kalshi, seeking $36 billion in damages.