Coinbase posted a net loss of $394.1 million in the first quarter as cryptocurrency prices fell dramatically during the period, causing the exchange to register significant losses on the digital assets it held on its balance sheet, the company said Thursday in its latest earnings report.
The company lost $482 million on the crypto that was held for investment purposes.
Coinbase CEO Brian Armstrong remained optimistic, saying that eventually “all of finance” will move onchain and his company was built to capitalize on the transformation.
“Despite the crypto market being down, the fundamental growth of the onchain economy is strong,” Armstrong said in a video posted to X. He also said Coinbase is transforming from a “spot-focused crypto platform to a place” where users can trade many asset classes, including derivatives, commodities, and futures trading, and prediction markets event contracts.
In the first quarter of 2025, Coinbase (COIN) earned $66 million in net income. This most recent quarter is Coinbase’s second consecutive quarter with a net loss. In its previous quarterly release, the company registered a net loss of $667 million.
The U.S.-based crypto exchange also reported during the first quarter of 2026 total revenues of $1.41 billion, down 31% when compared to the same period in 2025. Transaction revenue also fell 40% year-on-year to $756 million. Subscription and services revenue suffered less, dropping 14% to $584 million, Coinbase reported.
Cryptocurrency prices were highly volatile during the first quarter amid a major market selloff that saw Bitcoin fall from above $97,000 in January to around $63,000 in early February. At the end of the period, BTC continued to trade under $70,000, bringing the entire crypto market down with it.
Coinbase’s pushing more into institutional-based revenue streams could make the company less dependent on retail crypto trading volumes, which have historically been closely tied to cryptocurrency prices.
Armstrong also touted the advancement of AI payment possibilities and Coinbase becoming the popular destination for using “regulated stablecoins.” Coinbase’s stablecoin revenue rose by 11% to $305 million.
Coinbase sought to downplay its quarterly loss and declining revenue by highlighting some of its accomplishments for the quarter, including reaching an 8.6% share of the global crypto market trading. The company also reported an adjusted EBITDA of $303 million, down from $930 million in the first quarter of 2025.
The company’s stock was down about 6% in after-hours trading to $182 per share, according to Yahoo Finance.
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