Coinbase Stock Tumbles After Missing Revenue Estimates

Coinbase's stock price plummeted after the company released its second-quarter earnings report. The crypto exchange reported revenue of $1.22 billion, which fell short of Wall Street estimates of $1.29 billion.

The decline in revenue was largely driven by a decrease in consumer crypto spot trading volume, which dropped 38% compared to the same period last year. However, Coinbase's derivatives and prediction markets trading saw growth, partially offsetting the loss.

CEO Brian Armstrong attributed the decoupling of Coinbase's sales from Bitcoin trading fees to the fact that about 88% of its net revenue comes from sources other than spot trading in cryptocurrency.