Coinbase Q2 Earnings Stumble: Stock Plummets 8% as Crypto Giant Misses Estimates

Coinbase just face-planted into earnings season—and Wall Street isn’t laughing.

The damage: Shares cratered 8% after Q2 results failed to meet analyst expectations. No sugarcoating here: the crypto exchange whiffed its numbers, and traders slammed the sell button.

Behind the bleed: While the exact figures weren’t disclosed, the miss suggests softening trading volumes or squeezed margins—classic growing pains for a company tied to crypto’s wild cycles. (Funny how 'disruption' still bows to quarterly capitalism.)

Silver lining? Coinbase remains the go-to gateway for institutional crypto plays. But today’s drop screams a harsh truth: even blockchain believers can’t escape old-school earnings math.

Q2 earnings fall short

For the quarter, Coinbase reported total revenue of $1.5 billion, below the $1.59 billion consensus estimate.

Trading volume reached $237 billion, missing the expected $252.76 billion.

Transaction revenue came in at $764.3 million, while subscription and services revenue totaled $655.8 million—both under Wall Street forecasts.

Shift in balance sheet

Coinbase ended the quarter with $9.3 billion in cash, cash equivalents, and net USDC, a 6% decrease from the previous quarter.

The reduction was partly due to increased investments in digital assets.

BTC buys

Notably, Coinbase added $222 million in Bitcoin to its portfolio through consistent weekly purchases.

As of June 30, the fair value of digital assets held for investment stood at $1.8 billion, with another $951 million held as collateral.

For a detailed view of Coinbase’s bitcoin holdings, see the Coinbase bitcoin treasury tracker.

Impact of security incident

The quarter included $307 million in costs associated with the May 2025 data breach.

While assets under custody reached a new high, supported by ETF flows and corporate adoption, softer market activity weighed on fee generation.

Management highlighted the one-time impact of the security incident, which was partially offset by gains on the company’s crypto investments.

Plans for tokenized equities

Coinbase announced plans on July 31 to offer tokenized equities, though details on timing and structure were not provided.

The initiative was not addressed further in the company’s shareholder letter.