Coinbase, one of the world’s largest cryptocurrency exchanges, has posted a $667 million net loss over the final quarter of 2025, after net revenue fell 22% to $1.7 billion following weak trading volumes.

That compares with a $1.3 billion net profit the company saw in Q4 2024, a dramatic swing driven by a sharp fall in transaction revenue, with Coinbase taking in $982.7 million over the quarter, down from $1.56 billion a year earlier.

While that decline has been pinned to a 45% drop in customer transaction revenue, in a letter to shareholders, the exchange admitted to shareholders that it also took a $718 million unrealised loss on its crypto‑asset portfolio and a $395 million loss on strategic investments.

This slump can be tied to the spectacular fall in the value of Bitcoin since record highs in early October, which saw the cryptocurrency hit just above $126,000. Since then, Bitcoin’s value has almost halved, while a broader rout of digital assets has wiped nearly $2 trillion from the market. 

Over the same period, Coinbase saw its stock nosedive by 63%, resulting in a near 40% drop in share price over the course of the year.

“Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems. While asset prices can be volatile, under the surface, an undercurrent of technological change and crypto product adoption continues,” the company told investors.

Diversification helped cushion Coinbase from Bitcoin’s downturn. The firm now counts twelve products generating more than $100 million in revenue apiece, including two that generate more than $1 billion, while subscription and services revenue hit $2.8 billion in 2025, backed by about one million paying subscribers to Coinbase One.

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New records for stablecoin revenue also helped to bolster the company’s coffers, hitting $1.35 billion over the year, up from $910 million in 2024. Coinbase has seen stablecoin revenues slowly rising every quarter since Q4’24, taking advantage of rising market interest in these assets.

“It’s all about the company’s diversification and ‘shock absorbers’,” said David Bartosiak, stock strategist at Zacks Investment Research, in a statement to Reuters. 

“Stablecoins and subscription revenues are going to lessen the revenue volatility and smooth things out versus its prior reliance on cryptocurrency trading revenues.”

Looking ahead, Coinbase said that so far over Q1’26, it has generated around $420 million in transaction revenue, while it expects subscriptions and services to bring in up to $630 million.

Over the rest of 2026, Coinbase said it will focus on growing its flagship Everything Exchange, a one-stop shop for trading digital assets, derivatives, and equities, and will work to scale its stablecoin business and payments infrastructure.