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Coinbase posts $670M Q4 loss as it expands beyond trading

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Epstein files show crypto ties to Coinbase, Blockstream: DOJ

Coinbase reported a quarterly loss as it expanded into derivatives, stablecoins, and new markets to reduce reliance on spot crypto trading.

Summary

  • Coinbase diversified its business through futures, global expansion, and new financial products.
  • Market volatility and lower trading activity weighed on short-term performance.
  • Management remains focused on long-term stability and revenue balance.

Coinbase Global, Inc. reported a net loss of $670 million in the fourth quarter of 2025, despite posting record operational metrics for the full year, according to its earnings report released on Feb. 12.

The company said its Q4 results were in line with internal expectations, even as weaker crypto market conditions in late 2025 weighed on transaction revenue and profitability.

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Strong growth, weaker bottom line

In its shareholder letter, Coinbase highlighted major gains in trading activity and product adoption throughout 2025. While its crypto market share doubled to 6.4%, the total trading volume reached $5.2 trillion, up 156% year-over-year. 

Revenue from subscriptions and services also reached a record $2.8 billion, indicating rising demand for non-trading products such as stablecoins, staking, and custody services. Paid Coinbase One subscribers climbed to nearly one million, tripling over the past three years.

“We drove all-time highs across our products,” said chief executive officer Brian Armstrong. “The Everything Exchange is working, and we’re well-positioned for 2026.”

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Chief financial officer Alesia Haas added that the company met or exceeded its revenue and expense targets throughout the year, extending what she described as a multi-year track record of operational discipline.

However, softer market conditions in the final months of 2025 reduced trading activity and lowered asset prices, putting pressure on Coinbase’s core transaction business. According to GAAP accounting standards, these elements played a part in the quarterly net loss. 

Expanding beyond spot trading

As part of its “Everything Exchange” strategy, which aims to bring various asset classes onto a single platform, Coinbase continued to grow beyond spot trading in 2025. 

The company introduced 24/7 U.S. perpetual-style futures, expanded its global reach by acquiring Deribit, and launched new products like stock trading and prediction markets. At the same time, stablecoin and institutional services were further developed.

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These efforts are meant to reduce dependence on traditional crypto trading and make revenue less sensitive to price swings. As a result, average USD Coin (USDC) balances on the platform climbed to $17.8 billion, while customer-held assets tripled over three years. In 2025, more than 12% of the world’s crypto was stored on Coinbase.

After the earnings report was released, Coinbase shares fell about 8% as the wider digital asset market weakened. Analysts pointed to ongoing volatility and uncertain trading volumes as major short-term risks.

Even so, the company ended 2025 with a solid financial position, holding $11.3 billion in cash and equivalents. It also bought back $1.7 billion worth of shares during the year. Early 2026 has shown signs of recovery, with about $420 million in transaction revenue recorded by early February.

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Crypto World

CFTC Chair Says Agency is Ready to Oversee Entire Crypto Market

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CFTC Chair Says Agency is Ready to Oversee Entire Crypto Market

Michael Selig, US President Donald Trump’s nominee leading the Commodity Futures Trading Commission (CFTC), said the agency was prepared to oversee the entire $3 trillion crypto industry, with no timeline for Congress to pass a crucial market structure bill.

In a Wednesday statement about his first 100 days as CFTC chair, Selig said that the commission was “ready to take responsibility” for the crypto market and reiterated his claim that it was the sole regulator to oversee prediction markets.

His comments come as the US Senate considers the CLARITY Act, a crypto market structure bill that has been effectively stalled in committee amid discussions over stablecoin yield and other issues.

“The same regulatory clarity being delivered to the crypto industry is being developed for prediction markets, which can serve as powerful tools for information discovery and are regulated by the CFTC under the Commodity Exchange Act,” said Selig.

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Under Selig, who was confirmed by the Senate in December, the CFTC has adopted many policies signaling that the agency would soften its enforcement and regulation of digital assets compared to previous administrations. In March, the agency announced a memorandum of understanding with the Securities and Exchange Commission (SEC) as part of efforts to coordinate on regulation, including digital assets.

Related: Crypto exchange KuCoin agrees to $500K settlement, ending CFTC case

Although early drafts of the market structure bill suggested the legislation could give the CFTC additional authority to oversee digital assets, the SEC is expected to continue regulating cryptocurrencies it considers to be securities.

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Lawmakers pressing CFTC on insider trading claims over prediction markets

US state authorities and federal lawmakers have been targeting prediction market platforms like Kalshi and Polymarket over alleged violations of gaming laws and claims of politicians using insider information to profit.

While many of the state-level actions continue to be litigated in court, Selig has claimed that the CFTC has “exclusive jurisdiction” over prediction markets and threatened legal action against any challenges to its authority.

In a Tuesday event, CFTC enforcement director David Miller said that the agency’s position was that event contracts on prediction markets were not “gaming” but rather “swaps” that fall under its purview.

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Some lawmakers have also proposed legislation to ban elected officials with insider information from profiting from event contracts after suspicious trades on military actions involving Iran and Venezuela.

Magazine: A newbie’s guide to surviving crypto winter