## Coinbase's Q1 Results Fall Short of Expectations Coinbase's recent Q1 earnings announcement revealed a revenue of $2.03 billion, a 12% dip below the expected $2.1 billion. This shortfall, coupled with a 19% decrease in trading revenue to $1.3 billion, has prompted mixed reactions from analysts. ## Deribit Acquisition: A Strategic Move? Amidst the disappointing earnings, Coinbase unveiled its plan to acquire Deribit for $2.9 billion. Bernstein views this acquisition positively, believing it will solidify Coinbase's global market position and improve its chances of obtaining approval for cryptocurrency options from US regulators. ## Analysts Divided: Future Outlook While some, like JP Morgan, have lowered Q2 and annual revenue forecasts due to declining fees and reduced institutional investment, others see potential in Coinbase's growing stablecoin revenue and infrastructure services. These services, including custody and trading technology, could become crucial revenue streams, providing a buffer against market volatility and diversifying Coinbase's income sources. The Deribit acquisition is a longer-term play that could eventually pay off for the exchange. ```
