Coinbase Q1 net loss of $394.1 million, CEO seeks to reduce reliance on spot crypto trading business

BlockBeats News, May 8 — Coinbase released its first-quarter financial report, recording a net loss of $394.1 million due to a significant decline in cryptocurrency prices during this period, which caused substantial losses in digital assets held on the exchange’s balance sheet. The company incurred a $482 million loss on crypto assets held for investment purposes. Coinbase CEO Brian Armstrong remains optimistic, stating that “all finance” will eventually move on-chain, and the company is built to seize this transition. Armstrong said, “Despite the downtrend in the crypto market, the fundamental growth of on-chain economics remains strong.” He also mentioned that Coinbase is transitioning from a “spot-focused crypto platform” to a platform where users can trade multiple asset classes, including derivatives, commodities, futures, and prediction market event contracts.

In Q1 2025, Coinbase (COIN) reported a net profit of $66 million. This latest quarter marks Coinbase’s second consecutive quarter of net losses, following a $667 million loss in the previous quarter. Coinbase’s total revenue for Q1 2026 was $1.41 billion, down 31% compared to the same period in 2025; trading revenue declined 40% year-over-year to $756 million; subscription and service revenue saw a smaller decrease, down 14% to $584 million. During the first quarter, crypto prices were highly volatile, with the market experiencing a sharp sell-off that caused Bitcoin to fall from above $97,000 in January to around $63,000 in early February. At quarter’s end, BTC remained below $70,000, dragging down the entire crypto market.

Coinbase is increasing its focus on revenue sources related to institutional clients, which may reduce the company’s reliance on retail crypto trading volume—traditionally highly correlated with crypto prices. Armstrong also praised advances in AI payment possibilities and Coinbase’s emergence as a popular destination for using “regulated stablecoins.” Coinbase’s stablecoin revenue increased by 11% to $305 million.

Coinbase is attempting to downplay the quarterly losses and revenue decline by emphasizing some of its achievements during the quarter, including reaching an 8.6% share of the global crypto trading market. The company also recorded an adjusted EBITDA of $303 million, down from $930 million in Q1 2025. According to Yahoo Finance, the company’s stock price fell about 6% in after-hours trading, to $182 per share.