The long-awaited Coinbase earnings report for the first quarter of 2025 was released today, disappointing bullish expectations in several key aspects. However, user activity remains strong, and the overall USDC balance increased by 49% compared to the previous quarter.
Despite a positive day the day before, the company's stock price also fell by more than 3% in after-hours trading.
Coinbase Bearish Earnings Report
Coinbase, one of the largest cryptocurrency exchanges in the world, can point to several growth trends that provide reasons for optimism. For example, the U.S. Securities and Exchange Commission dropped its case against the company, and it acquired the world's largest crypto derivatives exchange.
The industry had bullish expectations for Coinbase's first quarter 2025 earnings report, but the actual results disappointed.
Overall, Coinbase's revenue for the first quarter was nearly $200 million less than the expected $2.2 billion, and transaction revenue was $70 million lower than projected.
Earnings per share were only $0.24 instead of $2.09, and revenue from subscriptions and services also fell short of expectations, missing by $4.5 million. Coinbase had already shown several bearish signals ahead of today's earnings report. For instance, fraud targeted its users, leading to significant theft.
The exchange's stock price also fell by 30% in the first quarter, marking the worst performance since the FTX collapse. Earlier today, the shares traded well amid expectations of a bullish report but significantly dropped after the market closed. Despite this seemingly bearish report, Coinbase still highlighted several positive points. Trading volume exceeded expectations, albeit slightly; the exchange reported $393 billion instead of the forecasted $392.7 billion.
In addition, the company's long-term stake in Circle is paying off, as total USDC balances in Coinbase products grew to $12.3 billion. This represents an impressive increase of 49% compared to the previous quarter (QoQ).
Between these factors, the acquisition of Deribit, and regulatory breakthroughs, Coinbase maintains optimism:
"Looking ahead, we are focused on expanding real crypto utility, strengthening and expanding our trading platform, and scaling the infrastructure that will support the financial system of the future. With increasing regulatory clarity, we are accelerating our vision of economic freedom," the company stated.
Ultimately, it is difficult to predict where the company is headed next. Although this earnings report did not meet expectations, Coinbase still has many resources at its disposal.
Moreover, the first quarter showed positive shifts for the exchange in terms of market expansion. Coinbase received regulatory licenses in both Argentina and India, further expanding its user base worldwide.#BinanceSquare #Write2Earn #TradeStories #cryto #Binance $ETH