Crypto Chill Cuts Deep: Coinbase Profit Plunges as Trading Slows
by Mighva Verma - 1 week ago - 2 min read
In a stark reminder of the crypto market’s volatility, Coinbase shares took a sharp 9% dive in after-hours trading on Thursday, following a disappointing earnings report that underscored weakening retail investor activity and sluggish trading volumes.
Coinbase Global Inc. (NASDAQ: COIN) experienced a significant market reaction following the release of its second-quarter earnings report, which revealed a notable decline in adjusted net income. The company's shares fell 11% in pre-market trading, indicating investor concern over the slowdown in trading activity.
Coinbase executives acknowledged the headwinds during the earnings call, citing “a cyclical lull in crypto volatility” and “lower engagement from retail traders” as core contributors. Despite a relatively stable crypto environment compared to the chaotic swings of past years, the lower activity left a tangible dent in the company’s core revenue stream.
Despite the short-term challenges, Coinbase remains optimistic about its long-term prospects. The company holds $9.3 billion in USD and $1.8 billion in crypto assets, providing a strong financial foundation. Additionally, the passage of the GENIUS Act, which establishes a regulatory framework for stablecoins, is expected to benefit Coinbase's business by promoting broader adoption of digital assets.
Coinbase’s CFO Alesia Haas described the environment as “muted but not alarming,” pointing to long-term crypto adoption trends and global expansion as reasons for optimism. Markets responded swiftly, slicing nearly a tenth off the company’s stock in after-hours trading.
Coinbase shares are now down over 20% from their 2025 peak, despite a strong start to the year that had some analysts predicting a sustained rebound.