Coinbase Slumps on Surprise Q1 Loss Amid Crypto Trading Volumes Crash

Coinbase, the largest U.S. crypto exchange, reported a surprise net loss of $394 million in Q1, missing Wall Street targets as crypto trading volumes collapsed.

The company posted a $1.49 per-share loss for the quarter ended March 31, according to its Thursday earnings release. Analysts polled by LSEG had expected a 27-cent profit.

Coinbase's revenue came in at $1.41 billion, down 31% year-over-year and short of the $1.52 billion consensus.

The company attributed the loss to a $482 million unrealized loss on crypto held for investment, largely due to Bitcoin's sharp decline during the period.

Coinbase CEO Brian Armstrong pointed to 'crypto cyclicality' and AI-driven productivity gains as the reason behind a 14% workforce cut affecting around 700 staff.