Coinbase revenue falls 10% in Q1, missing industry estimate
Analysis
Price Impact
MedCoinbase's q1 revenue fell short of estimates, and net income was significantly reduced due to a paper loss on crypto holdings. however, the acquisition of deribit and increased market share in trading could offset the negative impacts.
Trustworthiness
HighThe analysis is based on reported financial results and confirmed acquisitions.
Price Direction
NeutralMixed signals are present. while the initial reaction to the deribit acquisition was positive, the disappointing q1 results are causing a pullback in after-hours trading. the overall impact is uncertain.
Time Effect
ShortThe effects will be seen in the short term as the market digests the q1 results and the deribit acquisition.
Original Article:
Article Content:
Brayden Lindrea 2 minutes ago Coinbase revenue falls 10% in Q1, missing industry estimate Coinbase’s total revenue fell to $2 billion in Q1 as trading volumes across the market slowed, with net income falling dramatically as crypto prices slumped. 8 Total views Listen to article 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED Crypto exchange Coinbase’s total revenue fell 10% quarter-over-quarter to $2 billion in Q1, missing industry estimates by 4.1% as trading activity slowed across the market. Coinbase’s net income was sliced by 95% from a near-company record $1.29 billion in Q4 to $66 million, in a large part due to Coinbase marking a $596 million paper loss on its crypto holdings. The firm’s earnings per share of $1.94, however, managed to beat the Zacks Consensus Estimate of $1.85 for the quarter. Coinbase’s May 8 results also showed that transaction revenue fell 18.9% quarter-on-quarter to $1.26 billion, as did trading volumes, which dipped 10.5% to $393 billion as crypto market cap dropped by double digits over the quarter, partly attributed to the Trump administration’s tariffs. In contrast, US President Donald Trump’s election win in November was considered one of the main catalysts behind the rising market prices in Q4. Key financial metrics for Coinbase in Q1. Source: Coinbase Meanwhile, Coinbase’s subscription and services revenue rose 8.9% to $698.1 million, with stablecoin revenue the most significant contributor. Despite the fall in total revenue and trading volume, Coinbase said it gained more market share in global spot and derivatives trading while deepening its presence in emerging markets such as Argentina and India with “critical registrations.” On the regulatory front, Coinbase said the dismissal of its lawsuit with the US securities regulator marked a “major judicial win for balanced, innovation-friendly regulation, and our efforts to make crypto mainstream.” Coinbase makes deal with major crypto derivatives platform On May 8, Coinbase agreed to acquire crypto derivatives platform Deribit for $2.9 billion, marking the industry’s largest corporate acquisition to date. The acquisition will expand Coinbase’s footprint in the crypto derivatives market immensely, which previously had been limited to its Bermuda-based platform. Coinbase noted that Deribit facilitated over $1 trillion in trading volume in 2024 and has around $30 billion of current open interest. Related: $45 million stolen from Coinbase users in the last week — ZachXBT The deal now makes Coinbase the “global leader” in crypto derivatives trading, the firm said. Competitor firm Kraken struck a similar deal in March when it agreed to acquire futures brokerage NinjaTrader for $1.5 billion. Coinbase’s Deribit deal contributed to a 5.1% rise in Coinbase’s (COIN) share price during the May 8 trading day, though shares have pulled back 3.1% in after-hours since the crypto exchange posted its Q1 results. Coinbase’s change in share price on May 8, including after-hours. Source: Google Finance Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight # Coinbase # Business # Transactions # Adoption # Donald Trump Add reaction