Bitcoin News Today: Coinbase Stock Plunges 12% as Q2 Revenue Misses Estimates and Trading Volumes Drop 40%

Coinbase Global Inc.’s stock fell sharply on July 11, 2025, dropping nearly 12% in pre-market trading following the release of its second-quarter earnings. The decline brought the stock to $321.68, its lowest level in over a month [8]. This marked one of the steepest intraday declines since April 2025, as the market reacted to both internal performance and broader economic concerns.

The earnings report showed that Coinbase generated $1.5 billion in revenue for the quarter, below analyst expectations of $1.59 billion and a 5.7% decrease from the $1.6 billion it reported in the first quarter of 2025 [1]. The drop was largely attributed to a 40% year-on-year decline in crypto trading volumes, which fell to $237 billion [5]. Retail trading activity, in particular, underperformed expectations, contributing to the earnings miss [2].

Despite the revenue shortfall, the company reported a net income of $1.43 billion, driven largely by an unrealized gain on the appreciation of its crypto holdings and strategic investments, such as its stake in Circle Internet Financial Group Inc. [4]. However, the net gain did not offset the overall concerns over declining trading volumes and flat market capitalization [3].

John Todaro, a senior analyst at Needham & Company, highlighted that the earnings miss was driven by a shift in volume mix, particularly the weakness in retail trading compared to market expectations [2]. This trend has placed pressure on Coinbase, a platform heavily reliant on retail user activity, in a market where overall crypto volatility has decreased.

In response to these challenges, Coinbase’s founder and CEO Brian Armstrong has been pursuing expansion into traditional financial markets, including stock, prediction, and commodity trading. The company has been testing services such as FX and treasuries and is considering offering equities through partnerships or blockchain-linked shares [4]. Alesia Haas, the company’s CFO, noted that these initiatives are still in early stages and too soon to assess their economic impact [4].

Coinbase shares had surged 52% in the first seven months of 2025, reaching an all-time high of $419.78 on July 18. The company’s inclusion in the S&P 500 Index in May represented a milestone for the crypto sector [3]. However, the recent earnings report and subsequent stock decline signaled renewed uncertainty for the firm.

The broader market volatility was also influenced by shifting expectations around U.S. Federal Reserve monetary policy. Federal Reserve Chairman Jerome Powell indicated that inflation remains slightly above the target, though the economy is in a "solid position" [3]. This led to a broader risk-off sentiment across financial markets, with major cryptocurrencies like Bitcoin and Ethereum also experiencing significant liquidations. Over $438 million in liquidations were recorded on major derivatives platforms in the 24 hours following the earnings announcement, with Bitcoin and Ethereum among the most impacted [3].

Bitcoin’s price stood at $113,857.07 at the time, with a 0.46% decline over the past 24 hours. Over the 60-day and 90-day periods, Bitcoin recorded gains of 8.48% and 19.02%, respectively [3]. The continued volatility reflects the sensitivity of crypto assets to macroeconomic signals and policy shifts.

As the crypto sector navigates evolving economic indicators, market participants are advised to closely monitor policy developments. The Fed’s influence on investor sentiment remains a key factor, with on-chain data showing a risk-averse trend. This environment underscores the need for continued diversification and strategic adjustments by major crypto platforms [3].

Sources:

[1] https://finance.yahoo.com/news/coinbase-falls-revenue-misses-estimates-111005880.html

[2] https://www.mitrade.com/insights/news/live-news/article-3-1006511-20250802

[3] https://www.ainvest.com/news/coinbase-stock-plunges-as-crypto-trading-volumes-disappoint-in-q2-earnings

[4] https://www.ainvest.com/news/coinbase-q2-earnings-stablecoin-strength-stop-stock-slipping-250-gap-risk-2508/

[5] https://www.ainvest.com/news/coinbase-shares-drop-8-66-q2-revenue-misses-estimates-record-net-income-2508/

[6] https://web.ourcryptotalk.com/blog/coinbase-revenue-drops-in-q2-2025

[7] https://www.mitrade.com/au/insights/news/live-news/article-3-1006394-20250802

[8] https://www.fxleaders.com/news/2025/08/01/coinbase-q2-revenue-hits-1-5b-but-eps-misses-by-1-07-amid-retail-drop