Coinbase Q1 Net Loss $394M on Trading Slump

Coinbase Global reported a net loss of $394 million for the first quarter, as declining cryptocurrency trading volumes and market values offset gains in stablecoin revenue and subscriptions. The results, released after U.S. markets closed on Thursday, showed total revenue of $1.41 billion, missing analyst expectations of around $1.52 billion.

Transaction revenue, the company's core trading business, fell to $756 million, down more than 20 percent from the prior quarter and well below projections of $805 million. The drop reflected broader market weakness, with global cryptocurrency market capitalization declining over 20 percent and trading volumes sliding 28 percent quarter over quarter. Bitcoin prices fell about 22 percent during the period, while lower volatility in smaller assets further reduced activity. Consumer spot trading volumes dropped 35 percent, hitting retail participation hard.

Subscription and services revenue provided a buffer at $584 million, representing a record 44 percent of total revenue. Stablecoin revenue rose to $305 million, driven by increased adoption of USD Coin, or USDC, whose market capitalization reached approximately $80 billion. Average USDC...