Coinbase shrugs off quarterly loss as crypto market tanks

Core Insights - Coinbase experienced a significant decline in revenue and profit in the final quarter of 2025, reporting a net income loss of $667 million compared to a profit of $1.3 billion in the same period in 2024 [1] - The total revenue for the last quarter fell to $1.8 billion from $2.3 billion year-over-year, with transaction revenue dropping by 36% to $982.7 million [2] - Despite the downturn, Coinbase's subscription revenue from stablecoins surged by 61% year-over-year, reaching $364 million [4] Financial Performance - The net income loss for Coinbase in Q4 2025 was $667 million, a stark contrast to the $1.3 billion profit in Q4 2024 [1] - Total revenue decreased from $2.3 billion in Q4 2024 to $1.8 billion in Q4 2025 [2] - Transaction revenue saw a 36% decline, falling to $982.7 million [2] Market Context - The decline in Coinbase's revenue coincided with a broader downturn in the cryptocurrency market, particularly affecting Bitcoin and Ethereum, which are now significantly below their 2025 highs [6] - Coinbase's stock experienced volatility, dropping 8% ahead of earnings but rebounding in after-hours trading; however, it has fallen over 40% year-to-date [3] Business Developments - The stablecoin segment has shown robust growth, with revenue from stablecoins increasing by 61% year-over-year, attributed to a product launched in 2021 that allows users to earn yield [4] - There are ongoing discussions regarding legislation affecting stablecoin rewards, with some crypto executives indicating progress in talks [5]