Connect with us
DAPA Banner

Crypto World

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

Published

on

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.

Advertisement

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.”

Advertisement

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.

Advertisement

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.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

Published

on

$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

Key takeaways:

  • A Hyperliquid whale placed an $80 million bet against Bitcoin and the S&P 500 while going long on Brent crude oil prices.

  • The whale’s history of massive losses and inconsistent signals suggests the trade could fall on the wrong side of the market.

Bitcoin (BTC) showed strength on Wednesday, bouncing back from Tuesday’s $66,000 low after President Donald Trump teased a potential ceasefire in the US and Israel-Iran war. Even with Bitcoin trading above $68,000, one whale used Hyperliquid DEX to place an $80 million bet on a market collapse. 

Traders are now watching closely to see if this whale’s massive position signals a looming Bitcoin price drop.

Hyperliquid whale 0x94d373…c933814 position. Source: CoinGlass

The Hyperliquid whale, linked to address 0x94d373…c933814, carefully built this nearly $80 million leveraged position between Tuesday and Wednesday. The trade includes a $40 million short (sell) on Bitcoin futures near $68,760, a $2 million short on synthetic S&P 500 Index contracts, and a $37 million long (buy) in synthetic Brent oil contracts.

Crude Brent oil (left) vs. Bitcoin/USD (right). Source: TradingView

The whale’s aggregate position leverage stood at 7 times, indicating high conviction. The Bitcoin futures liquidation price was $80,083, while the Brent oil position would be forcefully terminated above $93. The timing of the trade is curious as S&P 500 Index futures gained 4% between Tuesday and Wednesday as traders anticipate the US and Israel-Iran war dissipating over the next few weeks.

On Wednesday, President Trump said “Iran’s New Regime President” is considering a “ceasefire,” although the conditions to fully reopen the Strait of Hormuz remain unknown. Iran demands reparations and sovereignty. Thus, one could assume that the Hyperliquid whale is counter-trading the market’s optimistic take, betting that Brent crude oil prices will jump while Bitcoin loses its value.

Advertisement

This Hyperliquid whale previously lost $40 million

This address belongs to a particularly unlucky whale, or at least one who has been extremely unsuccessful since late January. The Hyperliquid whale apparently uses bots for execution, given the sheer number of small trades that build into huge positions, but it still managed to lose $37 million in its first month of activity in December 2025.

The same user was flagged by X user ‘lookonchain’ on Feb. 5 after taking a massive loss on leveraged bullish bets on Ether (ETH), Bitcoin, Solana (SOL), and XRP (XRP). 

Source: X/lookonchain

According to the analysis, the whale had previously made $25 million in profits from shorts in multiple cryptocurrencies, but decided to flip the position on Feb. 4, resulting in a $40 million loss. There is no way to know exactly what triggered this entity to place those bets, but the event proves that even whales can misinterpret the market.

Related: Warren Buffett bought $17B in US T-bills: A bad omen for Bitcoin price?

The erratic signals from President Trump regarding a potential full-on invasion and the war in Iran leave room for opposing views. Iranian Foreign Minister Abbas Araghchi denied there were talks for a ceasefire but confirmed to Al Jazeera on Tuesday that there was an intention to end the war, according to CNBC.

Advertisement

Given the history of this whale’s market positioning and its track record of losing trades, it’s possible that the current $80 million bet may fall on the wrong side of the market.