Coinbase Loss Triggers 5% Stock Drop, Cuts 14% Staff
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- Coinbase posted a Q1 loss of $1.49 per share, missing consensus profit expectations of $0.27 and causing its shares to tumble >5% in after‑hours trading.
- Coinbase reported Q1 revenue of $1.41 billion, below analysts’ $1.52 billion forecast, with transaction revenue at $755.8 million (vs $805.2 million expected) and subscription‑and‑services revenue at $583.5 million (vs $619.3 million expected).
- Coinbase announced a workforce reduction of roughly 700 jobs, about 14% of staff, as part of an AI‑driven restructuring amid the broader crypto downturn.
- Coinbase highlighted growth in non‑trading lines: derivatives volume rose 169% YoY, retail derivatives revenue topped a $200 million annualized run rate, prediction‑market revenue exceeded $100 million annualized, and its Base blockchain handled 62% of global on‑chain stablecoin volume.
- Coinbase’s global crypto‑trading market share hit a record 8.6% in the quarter, driven largely by the surge in derivatives activity.
Why it matters: Investors lose as Coinbase’s share price drops and the company reports a loss, while the firm’s shift to derivatives, prediction markets and stablecoins aims to stabilize earnings; the 14% workforce cut trims costs but indicates deeper market strain.
