Core Viewpoint - Coinbase's stock price significantly declined after the release of its latest earnings report, primarily due to second-quarter revenue falling short of analyst expectations despite a year-over-year revenue increase [1][2] Group 1: Financial Performance - Coinbase reported $1.5 billion in revenue for the second quarter, a 3.3% year-over-year increase, but below the market expectation of $1.59 billion and a notable decline from $2 billion in the first quarter [1] - The company's net profit surged to $1.43 billion from $36.13 million in the same period last year, translating to earnings per share of $5.14 compared to $0.14 [1] - Subscription service revenue grew by 9% year-over-year to $655.8 million, but fell short of the expected $705.9 million [2] Group 2: Trading Volume and Market Conditions - Retail trading volume increased by 16% year-over-year to $43 billion, yet it was below the analyst forecast of $48.05 billion [2] - The overall cryptocurrency market capitalization remained stable, leading to a decline in Coinbase's spot trading volume in both the U.S. and global markets [2] - Analysts noted that the market's downturn in the second quarter was anticipated following a strong first quarter driven by favorable regulatory expectations from the Trump administration [2] Group 3: Business Diversification and Strategy - To reduce reliance on cryptocurrency trading volume, Coinbase is actively expanding into new business areas, including traditional stocks, prediction markets, foreign exchange, government bonds, and commodities [3] - The company’s CFO indicated that the technology and regulatory frameworks are maturing, marking a critical turning point for the industry [3] - Following the acquisition of the options exchange Deribit, Coinbase plans to continue its merger and acquisition strategy [4]