Coinbase Q1 Earnings Faceplant: Revenue Dives 10% as Crypto Winter Bites Harder Than Expected

Wall Street’s golden child trips on its own hype—again. Coinbase posts disappointing Q1 results, missing revenue targets by a country mile as retail traders finally remember crypto isn’t a guaranteed ATM.

The numbers don’t lie: Trading volumes froze solid, institutional players played chicken, and those juicy subscription revenues? More like pocket change. But hey—at least those ’cost-cutting measures’ (read: layoffs) padded the bottom line.

Silver lining? The suits still believe. Probably because they’re stuck holding the bag. Next earnings call should be a real comedy special—place your bets on whether they’ll blame ’market conditions’ or pull out the classic ’building for the long term’ card.

Transaction Volume And Revenue Take A Hit

Trading activity declined in Q1 as the broader crypto market lost value. Coinbase’s transaction revenue declined to nearly 19% to $1.26 billion. Trading volume also fell along similar lines, down over 10% to $393 billion. The exchange says this slowdown was partially driven by market worries related to the Trump administration’s tariffs.

Our Q1 2025 financial results are now live. pic.twitter.com/qyIufvpEvB

— Coinbase(@coinbase) May 8, 2025

Meanwhile, Coinbase referenced last year’s Q4 crypto boom, which it claimed was partially driven by US President Donald Trump’s election victory. The quarter experienced significantly higher trading volumes and enabled the company to report near-record profits.

Subscriptions And Stablecoins Bring In More

While trading was sluggish, Coinbase’s subscription and services business generated improved results. Revenue from this segment of the company increased almost 9% to $698 million. The largest contributor was income related to stablecoins.

This segment of the business provides Coinbase with a more stable source of funds, particularly when trading is slow. It’s also an indication that the company is not depending solely on market fluctuations and speculative trades to generate revenue.

Taking More Share

Despite lower levels in certain regions, Coinbase reported taking more share in both the spot and futures markets. The company also gained traction in emerging markets such as Argentina and India. It cited “critical registrations” in those countries, enabling it to access more users around the world.

Coinbase also marked a legal milestone, stating a court dismissing its lawsuit against the US Securities and Exchange Commission was a victory for reasonable and balanced regulation. The firm stated the ruling is an endorsement of its effort to bring crypto into the mainstream of finance.

In the same earnings release, Coinbase also revealed a nearly $3 billion agreement to acquire Deribit, a leading crypto derivatives exchange.

Deribit has, according to reports, processed over $1 trillion in trade in 2024 and possesses approximately $30 billion of open interest. According to Coinbase, the deal positions it as the global market leader in crypto derivatives trading.

Featured image from Fortune, Chart from TradingView