Catenaa, Monday, May 11, 2026 Coinbase reported a net loss of $394.1 million in the first quarter after a sharp crypto market decline cut trading revenue and reduced the value of digital assets held on its balance sheet.
The Nasdaqlisted exchange said Thursday it lost $482 million on crypto investments during the quarter as bitcoin and broader digital asset prices fell sharply from January highs.
Market Selloff
The company reported total revenue of $1.41 billion, down 31% from the same period a year earlier. Transaction revenue dropped 40% to $756 million as retail trading activity weakened during the market downturn.
Bitcoin fell from above $97,000 in January to nearly $63,000 in February before ending the quarter below $70,000. The broader crypto market also weakened during the period, pressuring exchange volumes and digital asset valuations.
Coinbase shares fell about 6% in afterhours trading following the earnings release.
Business Transition
Chief Executive Brian Armstrong said Coinbase is trying to reduce dependence on spot crypto trading by expanding into derivatives, commodities, futures products and prediction markets.
Armstrong said the company expects more financial services to move onto blockchain infrastructure over time. He also highlighted growth tied to artificial intelligence payments and regulated stablecoin activity.
Subscription and services revenue declined 14% to $584 million, a smaller drop than trading income. Stablecoin revenue rose 11% to $305 million during the quarter.
Coinbase also reported adjusted EBITDA of $303 million, down from $930 million in the first quarter of 2025.
Institutional Expansion
The exchange said it reached an 8.6% share of global crypto market trading during the quarter. Coinbase has increasingly focused on institutional products and recurring revenue streams to offset volatility tied to retail trading cycles.
The quarter marked Coinbase’s second straight net loss after reporting a $667 million loss in the previous quarter.
