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May 9, 2025—New York, NY— On Thursday, Coinbase Global Inc., a leading U.S. crypto exchange, reported lower first-quarter profits. Operating expenses rose significantly. Despite strong revenue growth, higher costs offset gains. This led to a 3% drop in its stock during after-hours trading.
The company earned an adjusted net loss of $526.6 million, which is $1.94 per share. The net loss was down from $679.2 million in the first quarter of 2024, or $2.53 per share, during the initial quarter in 2024. Although revenue increased by 24%, bringing it to $2.03 billion, up from $1.64 billion a year ago, it did not meet analyst expectations, which were expecting $2.1 billion for the quarter.
Coinbase has attributed the decline in profits mainly to a 51% year-overyear increase in operating expenses, which amounted to $1.3 billion. The amount of promotional and marketing spending increased as Coinbase was looking to expand its presence in the institutional and retail market for trading. In addition, the company suffered losses on cryptocurrency holdings employed for operations, increasing expenses.
In a strategic move, Coinbase announced it is buying Deribit, a Dutch-based cryptocurrency derivatives exchange with a value of $2.9 billion. This acquisition is expected to broaden the reach of Coinbase’s rapidly growing cryptocurrency options and futures market, especially among institutions seeking to access more sophisticated trading tools.
Despite the immediate pressure on earnings, Coinbase management remains optimistic regarding the long-term prospects, with a focus on increased use of crypto and new product lines as well as a greater degree of regulatory clarification.
The results highlight the company’s continued shift toward diversification and involvement with institutions as it tries to deal with the uncertain and competitive digital asset sector.
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