Coinbase reported an unexpected quarterly loss amid declining crypto trading volumes, while NY State seeks $36B in damages against prediction market Kalshi.
Regulation & Gov ·
Coinbase reported a net loss of $359 million in the second quarter, delivering results well below analyst expectations despite generating $1.22 billion in revenue. The exchange posted a loss of $1.36 per share, far worse than the roughly break-even outcome Wall Street had modeled, while quarterly revenue fell 14% from the prior quarter and 19% year-over-year. Total crypto spot trading volume declined more than 20% sequentially as transaction revenue dropped 21% to $599 million, pointing to weakening activity as prices slid and volatility reached multi-year lows.
The miss extended beyond trading-dependent segments. Subscription and services revenue also fell short of expectations, undermining the narrative that Coinbase's diversified business lines are insulated from trading cycles. Stablecoin revenue and prediction-market revenue showed strength—the latter more than doubling to a $100 million annualized run rate—and the company now derives 88% of net revenue from sources other than Bitcoin spot trading. Coinbase maintained $8.6 billion in cash and extended its streak of positive adjusted EBITDA, though third-quarter guidance appeared soft.
Separately, New York's attorney general filed a petition to shut down prediction market Kalshi and is seeking $36 billion in damages. The regulatory action marks an escalation in state-level scrutiny of crypto derivatives platforms, though details on the specific allegations remain unclear from available reporting.