Coinbase’s stock dropped 8.4% in after-hours trading on July 31 following the release of its second-quarter results, which fell short of analyst expectations.
The company’s shares closed at $377.76, declined to $346.01 after the announcement, and later recovered to $354.77 as trading continued.
Q2 earnings fall short
For the quarter, Coinbase reported total revenue of $1.5 billion, below the $1.59 billion consensus estimate.
Trading volume reached $237 billion, missing the expected $252.76 billion.
Transaction revenue came in at $764.3 million, while subscription and services revenue totaled $655.8 million—both under Wall Street forecasts.
Shift in balance sheet
Coinbase ended the quarter with $9.3 billion in cash, cash equivalents, and net USDC, a 6% decrease from the previous quarter.
The reduction was partly due to increased investments in digital assets.
BTC buys
Notably, Coinbase added $222 million in bitcoin to its portfolio through consistent weekly purchases.
As of June 30, the fair value of digital assets held for investment stood at $1.8 billion, with another $951 million held as collateral.
For a detailed view of Coinbase’s bitcoin holdings, see the Coinbase bitcoin treasury tracker.
Impact of security incident
The quarter included $307 million in costs associated with the May 2025 data breach.
While assets under custody reached a new high, supported by ETF flows and corporate adoption, softer market activity weighed on fee generation.
Management highlighted the one-time impact of the security incident, which was partially offset by gains on the company’s crypto investments.
Plans for tokenized equities
Coinbase announced plans on July 31 to offer tokenized equities, though details on timing and structure were not provided.
The initiative was not addressed further in the company’s shareholder letter.
