Coinbase loses nearly $400 million in Q1 as CEO seeks to reduce dependence on spot crypto trading

Coinbase experienced a net loss of $394.1 million in the first quarter, largely attributed to significant losses on its digital asset holdings amidst a dramatic cryptocurrency price decline. The company lost $482 million on its investments. CEO Brian Armstrong remains optimistic about the long-term growth of the onchain economy and is steering Coinbase towards becoming a broader trading platform, offering derivatives, commodities, futures, and prediction markets, rather than solely focusing on spot crypto trading. This marks Coinbase's second consecutive quarterly net loss, following a $667 million loss in the previous quarter. Total revenues for Q1 2026 were $1.41 billion, a 31% decrease year-on-year, with transaction revenue down 40% and subscription/services revenue down 14%. The volatile crypto market saw Bitcoin drop significantly during the quarter. Coinbase is actively pursuing institutional revenue streams and AI payment possibilities, with stablecoin revenue increasing by 11% to $305 million. Despite the losses, the company highlighted an 8.6% share of global crypto market trading and an adjusted EBITDA of $303 million. Coinbase's stock was down approximately 6% in after-hours trading.

(Source：The Block)