Coinbase reported a surprise net loss of $359 million, or $1.36 per share, for the second quarter of 2026, according to a July 31 Decrypt report, as a broad slowdown in crypto trading activity weighed on the exchange's results. Revenue came in at $1.22 billion, down 14% quarter-over-quarter and 19% year-over-year, missing the $1.29 billion Wall Street had expected.
Transaction revenue fell 21% to $599 million as crypto spot trading volume on the platform dropped more than 20% for the quarter, while subscription and services revenue also missed expectations.
Stablecoins and Prediction Markets Offer a Bright Spot
Not every line item declined. Stablecoin revenue reached $292 million, supported by a record average of $20 billion in USDC held on the platform. Coinbase's prediction-market revenue climbed 106% quarter-over-quarter, with its annualized run rate now exceeding $100 million. The exchange also captured a record 10.3% share of global crypto trading volume during the quarter.
Coinbase has also diversified away from its historical reliance on Bitcoin: non-Bitcoin sources now generate 88% of revenue, up from just 45% in 2020. The company held $8.6 billion in cash reserves at quarter-end. Shares of COIN fell roughly 5% in after-hours trading following the results.
Related: Coldcard Firmware Flaw Blamed for $38M Bitcoin Wallet Drain
A Rough Quarter Across the Market
Coinbase's earnings landed alongside other signs of a difficult quarter for crypto-adjacent companies. Business intelligence firm Strategy booked an $8.2 billion quarterly loss, far worse than the $2.15 billion analysts had expected, even as it added to its Bitcoin stack — held at a cost basis of $75,476 per coin — by 11%. Separately, a firmware flaw in Coldcard hardware wallets was blamed for a $38 million Bitcoin wallet drain affecting around 500 wallets.
Bitcoin itself traded around $63,696, down 1.65%, and Ether at $1,884.18, down 1.99%, even as Bitcoin ETFs pulled in $233 million in net inflows and Ether ETFs added $13 million the previous day. Separately, New York's attorney general escalated a legal fight against prediction-market operator Kalshi, seeking at least $36 billion in damages over allegations of an illegal gambling operation.
