The crypto market crash cost Coinbase $667 million in net losses in the fourth quarter - ForkLog: cryptocurrencies, AI, singularity, the future

# The crypto market crash cost Coinbase $667 million in net losses in the fourth quarter

The largest American cryptocurrency exchange, Coinbase, reported losses for Q4 2025. Following the release of the report, the company's stock in after-hours trading hit a two-year low.

Total revenue decreased by 5% compared to the previous quarter, amounting to $1.8 billion. Revenue from operations fell by 6% (to $983 million), and income from subscriptions and services declined by 3% ($727 million).

Net loss reached $667 million. The main reason was negative revaluation of the crypto portfolio and strategic investments. In comparison, the company ended Q3 with a profit amid high activity on the Ethereum network.

The financial results were affected by a large-scale year-end correction: market capitalization dropped by 25% (about $1.1 trillion). The downward trend continued into early 2026 — the industry lost another $700 billion.

The dynamics of the total cryptocurrency market capitalization at the turn of 2025-2026. Source: CoinGecko. Coinbase Institutional analysts called the decline a necessary "reboot" aimed at revitalizing the market before a new cycle.

Revenue Structure

Retail revenue decreased by 13%. This is due to users shifting to Advanced Trading tools with lower fees and the growing popularity of Coinbase One subscriptions.

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

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

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

Market Reaction and Volatility

After the report was published, Coinbase shares under the ticker COIN initially fell 4% in after-hours trading, hitting a two-year low of $135. However, the stock recovered, gaining 4%.

Coinbase stock price dynamics. Source: Google Finance. Recent weeks' pressure on the shares was also influenced by news of CEO Brian Armstrong selling $500 million worth of stock, as well as overall sector weakness.

Everything Exchange

The exchange continues to expand its product lineup within the "Universal Platform" (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, revenues from operations already reached about $420 million. However, the company warned investors not to directly project these results over the entire period due to high market volatility.

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