Coinbase Posts $666.7 Million Loss in Q4 2025

The crypto juggernaut hadn’t posted a loss in more than two years.

A flipped version of the Coinbase logo reflected in a mobile phone screen in London on Nov. 9, 2021, in a photo illustration. Leon Neal/Illustration/Getty Images

Coinbase posted a quarterly loss in the final three months of 2025—its first loss since the third quarter of 2023. A flight to gold has in part led to lower trading volumes and a selloff in the cryptocurrency market.

The San Francisco-based company endured a net loss of $666.7 million, or $2.49 per share, during the quarter ending Dec. 31, 2025. LSEG data shows many analysts estimate a profit of 55 cents per share.

Digital assets declined sharply over the quarter after reaching record highs in early October 2025. Bitcoin has almost halved since its Oct. 6 peak. Bitcoin fell below $82,000 in November 2025, an approximately 30 percent decline from its all-time high of $126,000 earlier that month, erasing the year’s gains.

“Crypto is cyclical, and experience tells us it’s never as good, or as bad as it seems,” Coinbase said in its shareholder letter published on Feb. 12.

In February 2025, the market lost $800 billion in market capitalization before a slight rebound. Bitcoin recovered to more than $86,000 by late that month. The sector has remained in a bear market despite a White House supportive of digital assets.

Investor divestment from spot bitcoin exchange-traded funds (ETFs), which drove much of the rally in 2025, helped to fuel the decline.

U.S. spot bitcoin ETFs demonstrated net withdrawals of $7 billion in November 2025, $2 billion in December 2025, and more than $3 billion in January.

Coinbase’s transaction revenue plummeted to $982.7 million from $1.56 billion a year prior, largely due to the more than 45 percent drop in consumer transaction revenue. The company’s shares climbed 1.2 percent in volatile after-hours trading. They are down nearly 40 percent for the year.

Offsetting some of the pain, subscription and services revenue grew 13.5 percent to $727.4 million, driven by expansion in stablecoin operations. Stablecoin revenue surged to $364.1 million from $225.9 million.

Stablecoins, digital tokens representing traditional assets such as the U.S. dollar or government debt, have been hyped as a modern rail for traditional finance. Coinbase earns revenue from USDC, a stablecoin issued in partnership with New York-based payments technology company Circle. USDC generates interest on the underlying U.S. dollar reserves.

The Trump administration has positioned stablecoins as an alternative to Central Bank Digital Currencies as well as a way to defend dollar supremacy.

The GENIUS Act, previously the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was signed into law by President [Donald] Trump in July 2025 after passing the House 308–222 and the Senate in a bipartisan vote.

The legislation creates a federal framework for stablecoins, requiring 100 percent reserve backing, consumer safeguards, audit standards, and boundaries to prevent rehypothecation.

Coinbase withdrew its support for the Clarity Act, designed to create comprehensive federal rules for digital assets, criticizing restrictions on stablecoin rewards and other provisions. The bill remains delayed.

A White House meeting earlier this month did not resolve disagreements between major U.S. banks and cryptocurrency firms.

Correction: A previous version of this article misstated in the headline the value of the Q4 loss. The Epoch Times regrets the error.