Coinbase Swings to $667M Loss as Crypto Slump Crushes Trading Volumes

Coinbase reported a fourth-quarter loss that caught analysts off guard, snapping a run of profitability as crypto prices and trading activity cooled late last year.

The exchange posted Q4 revenue of US$1.78 billion (AU$2.7 billion), down 22% from a year earlier and below the US$1.84 billion (AU$2.81 billion) analysts expected. 

Moreover, Coinbase reported a net loss of US$667 million (AU$1.02 billion), reversing a US$1.3 billion (AU$1.9 billion) profit a year ago.

Coinbase pointed to investment losses as the main swing factor. It said the value of its investment portfolio fell by US$718 million (AU$1.09 billion), largely unrealised, and that strategic investments, including its stake linked to Circle, declined by US$395 million (AU$604 million). 

At the same time, the core trading business weakened: consumer transaction revenue fell by more than 45%, a sign that retail activity pulled back sharply once the market turned.

Related: Coinbase Launches ‘Agentic Wallets’ to Power Autonomous AI Payments

So, What Happened?

The market. It turned really, really bad. Most cryptocurrencies slid through the final three months of 2025 after hitting record highs in early October, following new US tariffs on Chinese imports and threatened export controls on critical software. 

Coinbase just experienced what most exchanges do: when prices and sentiment drop, so does volume, and Bitcoin has roughly halved from its Oct. 6 peak.

There is also the issue with Spot Bitcoin ETFs, and while they helped power the earlier rally, they also suffered tremendous losses, with over US$7 billion (AU$10.7 billion) of withdrawals in November, about US$2 billion (AU$3.06 billion) in December, and more than US$3 billion (AU$4.5 billion) in January of this year.

The part of the business built to be less moody held up better, though. Subscription and services revenue rose 13.5% to US$727.4 million (AU$1.11 billion), helped by stablecoins, of which its revenue increased to US$364.1 million (AU$557 million) from US$225.9 million (AU$345 million).

Coinbase described crypto as cyclical in its shareholder letter, and outside analysts framed the stablecoin and subscription mix as “shock absorbers” compared with the company’s older reliance on trading fees.

COIN shares were up about 1.2% in volatile after-hours trading, though the stock is down nearly 40% for the year. 

Coinbase’s results land as stablecoins move further into the policy mainstream, with the GENIUS Act passed last year laying out a US regulatory framework aimed at expanding their use.

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