Coinbase's Mixed Quarter: Revenue Up, Profits Down

The first three months of 2025 brought a mixed bag for Coinbase. While the company saw a boost in revenue, profits took a hit. The company's earnings for the first quarter of 2025 were significantly lower than the previous year. The earnings were $65. 6 million, or 24 cents per share, which is a sharp drop from the $1. 18 billion, or $4. 40 a share reported in the same period last year. This decline was partly due to the impact of crypto investments. However, when excluding these investments, Coinbase's adjusted earnings were $527 million, or $1. 94 per share. Revenue did see an increase, rising to $2. 03 billion from $1. 64 billion a year ago. This growth was driven by a surge in stablecoin revenue. However, this increase fell short of the $2. 12 billion that analysts had predicted. The revenue from transactions was $1. 26 billion, while subscription and services revenue came in at $698. 1 million. Coinbase, which runs the largest cryptocurrency marketplace in the U. S. , saw a decline in consumer trading volume. This volume fell 17% from the fourth quarter to $78. 1 billion. The volume at the end of last year was boosted by the election of President Donald Trump. Many hoped that his presidency would bring a more favorable regulatory environment for cryptocurrencies. Institutional trading volume also saw a decline, falling 9% from the fourth quarter to $315 billion. The first quarter of 2025 had its ups and downs for cryptocurrency. Bitcoin reached an all-time high on January 20. However, concerns about Trump's tariff policy caused volatility in April. This volatility dampened investor appetite for riskier assets, including crypto. Despite this, Coinbase generated about $240 million in transaction revenue in April alone. Looking ahead to the second quarter, Coinbase expects subscription and service revenue to be in the range of $600 million to $680 million. However, stablecoin revenue growth is likely to be offset by lower blockchain rewards due to lower asset prices. Coinbase also made a significant move this quarter. The company announced plans to buy Dubai-based Deribit, a major crypto derivatives exchange. The deal, valued at $2. 9 billion, is the largest in the crypto industry to date. This acquisition will help Coinbase expand its operations outside the U. S. Coinbase's stock saw a decline of 2% in extended trading. However, shares gained 5% in Thursday's session but are down nearly 17% year to date.