Crypto markets weakened, trading slowed, and Coinbase’s investments lost value. Coinbase saw a loss in the fourth quarter of 2025, despite the profits observed in the previous quarter.
Crypto Market slide
The company reported $1.8 billion in revenue, which was slightly lower than the previous quarter. The transaction revenue fell to $983 million. Revenue from subscriptions and services such as Coinbase One also dropped to $727 million.
Coinbase posted a net loss of $667 million for the quarter, compared to the prior quarter with a profit, mainly due to investment-related losses tied to its crypto asset portfolio and strategic investments. When crypto prices fall, trading activity usually slows down. This impacts companies like Coinbase that make much of their revenue from trading fees.
According to CoinGecko data, pressure has moved into the new year, and the market has seen a fall of $700 billion since then.
What changed in customer behavior?
Consumer trading revenue fell 13% because more users moved to lower-fee “advanced trading.” Coinbase One had more subscribers for the benefits offered, including reduced trading fees.
Institutional spot trading volumes fell. However, institutional transaction revenue increased due to strong derivatives trading, including operations from Deribit, acquired recently by Coinbase.
Stablecoin has contributed to the revenue model of Coinbase with an increase of 3% quarter on quarter to $364 million, as average USDC balances amongst Coinbase products. The company also ended the year with $11.3 billion in cash and cash equivalents. However, the company continued to repurchase its shares, spending about $1.7 billion on it through early February.
Brian Armstrong adds pressure to Coinbase stock
On the other hand, Brian Armstrong sold more than $500 million worth of shares in the past nine months, pressing on Coinbase’s stocks. He liquidated over 1.5 million shares between April 2025 and January 2026.
