Crypto Market Crash Costs Coinbase $667 Million in Q4 Losses

Coinbase reported Q4 2025 losses; shares hit two-year low.

Coinbase, the largest American cryptocurrency exchange, reported losses for the fourth quarter of 2025. Following the report’s release, the company’s shares hit a two-year low in after-hours trading.

Total revenue fell by 5% from the previous quarter, amounting to $1.8 billion. Operating income dropped by 6% (to $983 million), while subscription and service revenues decreased by 3% ($727 million).

The net loss reached $667 million, primarily due to the negative revaluation of the crypto portfolio and strategic investments. In contrast, the third quarter ended with a profit amid high activity on the Ethereum network.

Financial results were impacted by a significant year-end correction: market capitalization fell by 25% (around $1.1 trillion). The downward trend continued into early 2026, with the industry losing another $700 billion.

Analysts at Coinbase Institutional described the downturn as a necessary “reset” intended to rejuvenate the market ahead of a new cycle.

Revenue Structure

Revenue from retail operations decreased by 13%. This was due to users shifting to Advanced Trading tools with lower fees and the growing popularity of the Coinbase One subscription.

Despite a decline in spot volumes, total revenue in the institutional segment increased. Growth was driven by derivatives trading, bolstered by the integration of the recently acquired Deribit platform.

The stablecoin segment also showed positive dynamics. Quarterly revenue in this area grew by 3%, reaching $364 million. Growth was supported by record average balances of USDC on the platform, which offset the effect of declining interest rates.

Coinbase ended the year with cash and equivalents totaling $11.3 billion. The company continued its buyback program, purchasing its own shares worth approximately $1.7 billion by early February.

Market Reaction and Volatility

After the report’s release, shares under the ticker COIN initially fell by 4% in after-hours trading, hitting a two-year low at $135. However, the stock later rebounded, gaining 4%.

Pressure on the stock in recent weeks was exerted by news of CEO Brian Armstrong selling $500 million worth of shares, as well as overall sector weakness.

Everything Exchange

The exchange continues to expand its product line under the “Everything Exchange” concept. Priorities include integrating stock and ETF trading, launching prediction markets in the US, and developing derivatives and payment infrastructure.

In the first half of the current quarter, operating income already amounted to about $420 million. However, the company cautioned investors against directly projecting these results for the entire period due to high market volatility.

Earlier, Coinbase launched the Agentic Wallets infrastructure, designed for AI agents.