- Coinbase missed Q1 2025 revenue expectations with $2.03B reported despite Bitcoin’s surge near $100K, as trading activity slowed amid market uncertainty.
- To counter weakening spot volumes, it acquired crypto derivatives giant Deribit for $2.9B, signaling a strategic pivot.
Coinbase, America’s largest publicly traded crypto exchange, reported underwhelming Q1 2025 earnings on Thursday, missing Wall Street’s revenue expectations despite Bitcoin’s surge toward $100,000. The results highlight an emerging disconnect between crypto price action and trading volume—particularly in the retail segment.
The company posted $2.03 billion in revenue for the quarter, falling short of analysts’ estimates of $2.2 billion and down 10% from Q4 2024. Adjusted earnings per share were just $0.24, missing the $2.09 consensus by a wide margin. Transaction revenue—a key component of Coinbase’s business—came in at $1.26 billion, also below the expected $1.33 billion.
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Coinbase attributed the softness to “macro uncertainty and retail caution,” underscoring how geopolitical tensions and unclear U.S. crypto regulations are weighing on investor participation. Still, there were some bright spots: subscription and services revenue rose 37% year-over-year to $698 million, buoyed by strong growth in stablecoin activity, especially involving USDC.
In response to the slowdown in spot trading, Coinbase unveiled a bold $2.9 billion deal to acquire Deribit, one of the world’s top crypto derivatives platforms. The Dubai-based firm processed over $1 trillion in crypto options volume last year, positioning Coinbase to capitalize on a booming segment increasingly favored by institutions.
“This acquisition marks a major step forward in our mission to build the world’s leading financial hub for the crypto economy,” said CEO Brian Armstrong.
The move signals Coinbase’s strategic pivot toward derivatives, aligning with broader industry shifts as companies brace for a more regulated and institutionalized future. Ripple’s recent $1.25 billion acquisition of Hidden Road echoes this trend, suggesting consolidation and diversification are key strategies amid policy changes and evolving market structure.
Despite a 3% dip in after-hours trading following the earnings release, Coinbase’s long-term bet on derivatives may prove prescient if institutional demand continues to rise and U.S. regulatory clarity emerges.
