Coinbase Global reported a drop in adjusted profit for the second quarter on Thursday, as gains in subscription and services revenue were offset by weaker trading activity amid reduced cryptocurrency volatility.
Retail crypto trading volumes remained sluggish in the second quarter as investor appetite remained muted amid market uncertainty and inflationary pressures, despite a rebound in crypto prices.
A bullish crypto market also prompted many retail investors to hold on to their digital assets in anticipation of higher returns, limiting trading activity. Crypto asset volatility was down 16 per cent on a sequential basis, the company said.
Transaction revenue fell 2 per cent to $764.3 million from a year earlier. However, revenue from the company’s subscription and services unit — which includes businesses outside of trading — rose 9.5 per cent to $655.8 million.
Shares of the company, which have gained nearly 54 per cent in 2025 on crypto enthusiasm and its addition to the benchmark S&P 500 index, fell 6.8 per cent in extended trading.
Adjusted net income came in at $33.2 million, or 12 cents per share, in the three months ended June 30, compared with $294.4 million, or $1.10 apiece, a year earlier.
Net profit, which surged compared to the year-ago period, was largely driven by gains from the fair value remeasurement of the company’s investment in stablecoin issuer Circle and gains from its crypto asset investment portfolio, Coinbase said.
REGULATORY BOOST
A portion of Coinbase’s subscription and services revenue is derived from stablecoin holdings and related platform activities. The company also benefited from optimism surrounding the stablecoin legislation passed during the quarter.
Stablecoin revenue came in at $332.5 million in the second quarter, up from $240.4 million in the year earlier.
The U.S. House of Representatives passed the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” or the GENIUS Act, earlier this month, sending the bill to President Donald Trump, who signed it into law.
The Genius Act aims to create a regulatory framework for stablecoins and promote broader adoption.
“These bills provide a clear regulatory foundation for stablecoins and digital assets, potentially unlocking new opportunities for Coinbase,” the company said in a letter to shareholders, referring to the Genius Act and the Clarity Act.
The Clarity Act, if enacted, would help define whether a cryptocurrency qualifies as a security or a commodity — clarifying the jurisdiction of the Securities and Exchange Commission (SEC) over the sector.
“And they’re still sitting on a war chest of $9.3 billion in USD resources and another $1.8 billion in crypto investment assets. That’s not dry powder — that’s a full-blown arsenal,” said David Bartosiak, stock strategist at Zacks Investment Research
