COIN Stock Slides After Earnings Miss — Coinbase CEO Says The Crypto Exchange Is Becoming More Than A Bitcoin Bet

• Revenue fell year-over-year and missed Wall Street estimates as softer crypto trading weighed on results.
• CEO Brian Armstrong said the company captured a record share of global crypto trading volume during the quarter.
• Armstrong also highlighted expanding businesses, including stablecoins, Base and prediction markets, as future growth drivers.

Coinbase Global (COIN) shares fell nearly 7% in after-hours trading on Thursday after the crypto exchange reported second-quarter results that missed Wall Street expectations, as weaker digital asset trading weighed on its core business. The company, however, pointed to growing subscription revenue and record market share in crypto trading as signs its diversification efforts are gaining traction.

At the time of writing, COIN stock had trimmed some of the losses and was trading down 5%.

COIN Revenue Misses Expectations

For the three months ended June 30, Coinbase reported revenue of $1.22 billion, down from $1.50 billion a year earlier and below analysts’ expectations of $1.29 billion, according to Fiscal.ai.

The crypto platform posted a loss of $1.36 per diluted share, compared with a profit of $5.14 per share in the year-ago quarter. Analysts had expected a loss of $0.23 per share, according to Fiscal.ai.

The results came during a quarter in which bitcoin traded largely within a range. Though market conditions improved from the previous quarter, sustained outflows from bitcoin ETFs, elevated interest rates and broader market volatility continued to weigh on investor appetite for risk, according to CNBC.

Despite the softer trading environment, subscription revenue accounted for a larger share of Coinbase's business during the quarter. Subscription revenue totaled $555 million, while transaction revenue came in at $599 million.

COIN CEO Highlights Growth Beyond Spot Trading

CEO Brian Armstrong said Coinbase reached another all-time high in crypto trading market share, adding that the performance demonstrates the company’s ability to compete across different market conditions.

“Coinbase is no longer a bet just on the price of Bitcoin,” Armstrong said in the company's earnings release. “All of financial services are getting updated by crypto, whether that's trading or payments or lending, and Coinbase is the best-positioned company in the world to power this.”

In a post on X, Armstrong also highlighted the company's businesses beyond spot trading, including stablecoins, Base and prediction markets. He added that Coinbase captured a record 10.3% share of global crypto trading volume during the quarter.

COIN Stock: What Stocktwits Retail Sentiment Says

On Stocktwits, retail sentiment toward COIN shifted to ‘neutral’ from ‘bearish’ over the past 24 hours, while message volume remained ‘normal’ at the time of writing.

In a Stocktwits poll asking traders which earnings-driven dip they were most interested in buying among Coinbase, Reddit, Roblox and GoDaddy, COIN ranked second with 21% of nearly 700 votes at the time of writing. Reddit led the poll with 59% of the votes.

One bullish trader on Stocktwits said the slowdown in trading revenue was not surprising given the softer crypto market, adding that Coinbase is evolving beyond “just an exchange.” The trader pointed to the company’s long-term growth drivers and said bear markets are periods when stronger companies continue to build.

COIN shares have fallen about 30% year to date.

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