Coinbase (COIN) Earnings and Sales Disappoint Wall Street as Trading Volume Falls 10% Amid Market Turmoil
Coinbase shares fall after earnings miss Wall Street expectations amid market volatility
The crypto exchange attributed its weak quarterly results to a decline in digital currency prices caused by US President Donald Trump's tariff policies and macroeconomic uncertainty.
By Ellen Brown | Edited by Aoyon Ashraf May 9, 2025 1:44 PM Published May 8, 2025 8:27 PM Translated by IA
Here's what I learned:
- Coinbase reported $2 billion in revenue for the first quarter, which missed analysts' estimates and was down from $2.27 billion in the fourth quarter.
- Trading volume fell 10% to $393.1 billion and transaction revenue fell 19% as market volatility failed to spur activity.
- Analysts had already cut their forecasts ahead of the report, pointing to weaker trading since January amid macroeconomic uncertainty.
Coinbase (COIN) shares fell nearly 3% in post-market trading after the company reported a significant decline in first-quarter revenue that missed analyst expectations amid economic uncertainty in the U.S.
The crypto exchange reported revenue of $2 billion, down from $2.27 billion in the fourth quarter and below analysts’ estimates of $2.1 billion. The company also reported earnings per share of $0.24, well below the average analyst estimate of $1.93, according to FactSet.
Trading volume fell 10% to $393.1 billion from the previous quarter, while transaction revenue was $1.3 billion, down approximately 19% from the fourth quarter.
“Average crypto asset volatility increased in Q1, with BTC reaching a new all-time high in January. However, crypto prices fell in line with the broader market decline driven by tariff policy and macroeconomic uncertainty,” Coinbase said in a letter to shareholders.
Analysts at JP Morgan, Barclays and Compass Point have cut their forecasts ahead of the earnings report as cryptocurrency trading volume has slowed significantly since January amid uncertainty over the future of the U.S. economy.
Trading platform Robinhood (HOOD), whose clientele is often compared to Coinbase's trading base, reported a 13% decline in transaction revenue in April.
However, Coinbase’s $2.9 billion acquisition of derivatives exchange Deribit makes it the new leader in global crypto options trading, ahead of Binance and other competitors. The move opens a new chapter in derivatives markets that investors will be watching closely.
Read more: Wall Street analysts say Coinbase's $2.9 billion Deribit deal poses 'real threat' to rivals
UPDATE (May 8, 20:43 UTC): Added additional paragraph at the end and information about the share price decline.
