{"id":96939,"date":"2026-05-08T14:51:00","date_gmt":"2026-05-08T11:51:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=96939"},"modified":"2026-05-08T14:56:39","modified_gmt":"2026-05-08T11:56:39","slug":"coinbase-posts-394m-quarterly-loss","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/coinbase-posts-394m-quarterly-loss\/","title":{"rendered":"Coinbase posts $394m quarterly loss"},"content":{"rendered":"<p>The cryptocurrency exchange Coinbase ended the first quarter of 2026 with a net loss of $394.1m.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Our Q1 2026 financial results are live.<\/p>\n<p>The summary? Everything is moving onchain. <a href=\"https:\/\/t.co\/kNzrqc9mku\">pic.twitter.com\/kNzrqc9mku<\/a><\/p>\n<p>\u2014 Coinbase \ud83d\udee1\ufe0f (@coinbase) <a href=\"https:\/\/twitter.com\/coinbase\/status\/2052480875850252608?ref_src=twsrc%5Etfw\">May 7, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>A year earlier, it made a $66m profit for the same period.\u00a0<\/p>\n<p>The main driver was a market correction: the firm\u2019s investment crypto portfolio fell by $482m. Losses have now been recorded for a second straight quarter: in the previous reporting period the figure <a href=\"https:\/\/forklog.com\/en\/news\/crypto-market-crash-costs-coinbase-667-million-in-q4-losses\">was $667m<\/a>.<\/p>\n<p>Coinbase\u2019s revenue fell 31% year on year to $1.41bn. Transaction fees brought in $756m (-40%), while subscriptions and services generated $584m (-14%).<\/p>\n<p>The exchange\u2019s share of the global crypto market stood at 8.6%, and adjusted <span data-descr=\"company's profit before taxes, loan interest and amortization\" class=\"old_tooltip\">EBITDA<\/span> declined from $930m to $303m.\u00a0<\/p>\n<p>After the release, COIN shares fell 2.5% in after-hours trading to $192.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-3b0cc575e7fee92c-3842262011118061.webp\" alt=\"image\" class=\"wp-image-279750\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/finance.yahoo.com\/quote\/COIN\/\">Yahoo Finance<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Analysts at Bernstein <a href=\"https:\/\/www.theblock.co\/post\/400552\/bernstein-says-coinbases-everything-exchange-strategy-is-gaining-traction-despite-weak-first-quarter-results-sees-71-upside\">maintained<\/a> a positive outlook on the shares with a $330 target. They argue the market underestimates Coinbase\u2019s growth catalysts, including progress on the <a href=\"https:\/\/forklog.com\/en\/news\/clarity-act-finalizes-stablecoin-yield-provisions\">CLARITY Act<\/a>. The experts noted that the \u201ceverything exchange\u201d strategy is starting to show results.<\/p>\n<h2 class=\"wp-block-heading\">Reducing reliance on spot trading\u00a0<\/h2>\n<p>Brian Armstrong, Coinbase\u2019s chief executive, said the company is shifting from a spot crypto exchange to a broader trading and infrastructure platform.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">There\u2019s a generational shift happening, and Coinbase is uniquely positioned to capture it:<\/p>\n<p>1) The onchain economy has reached escape velocity<br \/>2) Coinbase&#8217;s full stack platform is powering it<br \/>3) The next frontier is agentic and on Coinbase<\/p>\n<p>Our thesis is simple: crypto is the\u2026 <a href=\"https:\/\/t.co\/5iJY8aeCfe\">pic.twitter.com\/5iJY8aeCfe<\/a><\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a href=\"https:\/\/twitter.com\/brian_armstrong\/status\/2052481076430262509?ref_src=twsrc%5Etfw\">May 7, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The platform plans to expand trading across multiple asset classes, including commodities, futures and event contracts on prediction markets. In March, Coinbase <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-and-kraken-expand-trading-instruments\">launched<\/a> trading in regulated derivatives for Advanced platform users in 26 European countries.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cOur thesis is simple: cryptocurrency is the best form of money, and the infrastructure will rebuild the existing financial system. If it concerns money, it will concern cryptocurrency,\u201d Armstrong said.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>He argues that building institutional revenue streams should reduce the exchange\u2019s dependence on retail volumes, which historically track the prices of digital assets.<\/p>\n<p>One growth area remains <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>. Revenue from this segment rose 11% to $305m. Armstrong also pointed to results from Coinbase-affiliated <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">L2<\/a> network <a href=\"https:\/\/forklog.com\/en\/news\/what-is-base-coinbases-l2\">Base<\/a>: stablecoin transaction volumes increased tenfold in the quarter.\u00a0<\/p>\n<p>He also highlighted prospects for AI payments. The exchange supports the <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-unveils-payment-technology-for-ai-agents\">x402 protocol<\/a>, which enables digital agents to settle online using <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-usdc-stablecoin\">USDC<\/a>.\u00a0<\/p>\n<p>Coinbase also <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-and-stripe-to-facilitate-amazons-ai-agent-payment-launch\">participates<\/a> in developing Amazon Bedrock AgentCore Payments \u2014 a toolkit for autonomous payments by AI assistants.<\/p>\n<h2 class=\"wp-block-heading\">Terms of the Circle deal<\/h2>\n<p>On the Q1 earnings call, Coinbase CFO Alesia Haas also commented on the company\u2019s USDC agreement with Circle.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Onchain is the new standard.<\/p>\n<p>The world is moving into crypto, and Coinbase is at the heart of it.<\/p>\n<p>Going live for our Q1 earnings call to share more.<a href=\"https:\/\/t.co\/QtAzD7iLgY\">https:\/\/t.co\/QtAzD7iLgY<\/a><\/p>\n<p>\u2014 Coinbase \ud83d\udee1\ufe0f (@coinbase) <a href=\"https:\/\/twitter.com\/coinbase\/status\/2052500544774607108?ref_src=twsrc%5Etfw\">May 7, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>She said the contract is automatically renewed every three years in perpetuity and cannot be terminated.\u00a0<\/p>\n<p>Coinbase\u2019s chief legal officer, Paul Grewal, added that the current terms of the agreement with Circle are already set and will be renewed automatically. The exchange expects to continue the partnership on the same basis.<\/p>\n<p>Under the partnership, Circle is to share nearly half of USDC profits with Coinbase. That makes the stablecoin line one of the exchange\u2019s main sources of steady income\u2014especially as spot trading\u2019s share declines.<\/p>\n<h2 class=\"wp-block-heading\">Hours-long outage\u00a0<\/h2>\n<p>On May 7, Coinbase suffered an outage that left some users facing delays in sending and receiving assets.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">On May 7th Coinbase experienced service disruptions. Here\u2019s a quick summary of what happened:<\/p>\n<p>\u2192 Around 8PM ET, Coinbase systems flagged high error rates across multiple services.<br \/>\u2192 We traced these errors to amazon failures in Availability Zone (use1-az4) in the AWS US-EAST-1\u2026<\/p>\n<p>\u2014 Coinbase Support (@CoinbaseSupport) <a href=\"https:\/\/twitter.com\/CoinbaseSupport\/status\/2052686304106746066?ref_src=twsrc%5Etfw\">May 8, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>At first the exchange reported \u201cdegraded performance\u201d, later citing elevated temperatures in one AWS data centre as the cause. Trading on the platform was unavailable for six hours. The incident affected transfers on the Aleo and <a href=\"https:\/\/forklog.com\/en\/news\/what-is-solana-sol\">Solana<\/a> networks.\u00a0<\/p>\n<p>At the same time, <a href=\"https:\/\/forklog.com\/en\/news\/revolut-and-three-firms-selected-for-stablecoin-testing-in-the-uk\">Revolut<\/a> experienced issues. Users received notifications showing bitcoin\u2019s price dropping to $0.2. Pricing display errors <a href=\"https:\/\/x.com\/_btcd\/status\/2052648316198912233\">affected<\/a> charts of altcoins, including <a href=\"https:\/\/forklog.com\/en\/news\/what-are-ripple-and-the-cryptocurrency-xrp\">XRP<\/a> and Solana.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">According to Revolut, The price of Bitcoin has just dropped to $0.02 <\/p>\n<p>I guess its time to buy! \ud83d\ude02 <a href=\"https:\/\/t.co\/YIbwBGrkeT\">pic.twitter.com\/YIbwBGrkeT<\/a><\/p>\n<p>\u2014 That Martini Guy \u20bf (@MartiniGuyYT) <a href=\"https:\/\/twitter.com\/MartiniGuyYT\/status\/2052655916659724742?ref_src=twsrc%5Etfw\">May 8, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On May 5, Coinbase <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-to-cut-workforce-by-14-and-focus-on-ai-integration\">announced<\/a> cuts of about 14% of its staff. Armstrong said the move was needed to optimise costs and adopt artificial intelligence more aggressively in workflows.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency exchange Coinbase ended the first quarter of 2026 with a net loss of $394.1m.<\/p>\n","protected":false},"author":1,"featured_media":96940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Coinbase posts $394.1m Q1 2026 net loss; revenue down 31%.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,1138,1252,807],"class_list":["post-96939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-opinions","tag-reports","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"Coinbase posts $394.1m Q1 2026 net loss; revenue down 31%.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/96939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=96939"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/96939\/revisions"}],"predecessor-version":[{"id":96941,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/96939\/revisions\/96941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/96940"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=96939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=96939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=96939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}