The cryptocurrency exchange posted paradoxical Q2 results, with net income skyrocketing to $1.43 billion (up from $36M YoY) while revenue fell 27.5% quarterly to $1.42 billion. This financial alchemy was enabled by a $1.5 billion windfall from Circle’s public listing – oinbase">Coinbase holds 8.4 million CRCL shares from their USDC partnership dissolution – plus $362 million in crypto investment gains. Without these one-time boosts, the company would have reported a substantial loss.
Transaction revenue collapsed nearly 40% to $764.3 million as monthly active users dropped to 8.7 million. Both retail (-40.7%) and institutional (-38.5%) trading volumes shrunk dramatically, while even Base network revenue fell 21% due to subsidized fees. itcoin">Bitcoin dominated trading (30% volume, 34% revenue), with “other altcoins” capturing 55% of volume. The subscription segment declined 6%, saved only by 12% growth in stablecoin revenue to $332.5 million.
Expenses rose 15% to $1.52 billion, including costs from May’s data breach and 320 new hires. Despite projecting stronger July transaction revenue ($360M monthly run rate), investors reacted negatively – shares fell 7% after hours. The results highlight oinbase">Coinbase’s growing reliance on non-trading revenue streams as crypto markets remain sluggish, with its Circle stake now representing a valuation anchor exceeding its core exchange business.
