Coinbase Stock Retraces Some Bitcoin-Driven Gains After Disappointing Earnings Report
Coinbase's Q1 earnings fell short of analyst predictions, causing shares to dip despite a recent Bitcoin surge. The company also announced a major acquisition in the crypto options space.
Coinbase (COIN) revealed its first-quarter earnings, which did not meet market expectations, leading to a decline in its stock price during after-hours trading, following a Bitcoin-fueled rally earlier in the week.
The cryptocurrency exchange posted revenue of $2.03 billion, marking a 24% increase year-over-year, yet this figure was below the consensus estimates from Visible Alpha. Adjusted net income dropped to $526.63 million, or $1.94 per share, down from $679.2 million, or $2.53 per share, in the previous year, significantly missing analyst forecasts.
Following the earnings release, Coinbase shares fell nearly 3% in extended trading after a 5% gain during regular trading hours on Thursday, spurred by Bitcoin's price climbing above $100,000 for the first time in several months. The stock has declined approximately 17% year-to-date through Thursday’s close.
Looking forward, Coinbase projected second-quarter subscription and services revenue between $600 million and $680 million, which is below analysts’ expectations of $704 million.
In a letter to shareholders, the company cited "macro uncertainty, including global trade policy concerns," as factors dampening consumer sentiment and potentially softening cryptocurrency trading volumes.
Additionally, Coinbase announced it has agreed to acquire Deribit, a prominent crypto options exchange, for $2.9 billion in a combination of cash and stock, marking a significant expansion into crypto derivatives.
Correction—May 8, 2025: This article has been updated to reflect Coinbase’s agreement to acquire Deribit for $2.9 billion.
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