Coinbase stock (NASDAQ: COIN) fell as much as 9% in after-hours trading on August 1, 2025. The dip came as the crypto exchange reported disappointing second-quarter earnings. The company posted a strong net income of $1.4 billion, largely due to unrealized gains from strategic investments. The revenue figures failed to meet Wall Street expectations, causing investor concern.
Q2 revenue came in at $1.5 billion, below the anticipated $1.59 billion. Transaction revenue reached $764 million, and subscription and services revenue totaled $656 million, both underperforming analyst forecasts. Earnings per share (EPS) also fell short, at just $0.12 versus the $1.49-$1.51 consensus estimate.
Despite the miss, analysts remain optimistic about Coinbase's long-term prospects. Citigroup and Jefferies have both raised their price targets, citing the company's robust asset profile, strategic investments, and growing institutional adoption. Total assets at the end of Q2 stood at $12.1 billion, including $9.3 billion in cash and equivalents and nearly $1 billion pledged as collateral.
Notably, Coinbase added 2,509 BTC to its holdings and unveiled new growth initiatives. A partnership with JPMorgan Chase is set to allow Chase credit card users to fund their Coinbase wallets by fall 2025 directly. The company also plans to launch tokenized US equities and prediction markets, pending regulatory approval.
COIN share price closed the day at $377.76 after briefly dipping to $343 in after-hours trading, reflecting a mixed but forward-looking investor sentiment.
Conibase shares chart on TradingView shows gains of 0.07% at press time:
Though the Q2 results showed weaker revenue performance, analysts believe Coinbase is well-positioned for the future. With strong liquidity, strategic partnerships, and a growing push into tokenization, the company continues to evolve despite market volatility. Investors should stay updated on the upcoming global cues and US regulatory environment before making any financial decisions.
Also Read: JPMorgan and Coinbase Team Up to Bring Crypto Purchases to Chase Cardholders