Coinbase Reports $667M Loss in Q4 2025 Amidst Crypto Portfolio Decline

Coinbase's Crossroads: From Spot Trading to a 'Everything Exchange' Future

Published on Feb. 15, 2026

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Coinbase, America's largest cryptocurrency exchange, recently reported a net loss of $667 million for the fourth quarter of 2025. This marks a return to red figures after two years, driven by substantial valuation losses on its cryptocurrency holdings and strategic investment portfolio. Despite achieving record trading volumes, the results underscore a pivotal shift in the crypto landscape.

Why it matters

Coinbase's mixed performance coincides with increasing competition, particularly from decentralized derivatives platforms like Hyperliquid. The company's exposure to cryptocurrency price volatility and its ability to successfully diversify into new asset classes will be crucial in determining its long-term competitiveness.

The details

The primary driver of the Q4 loss was a $718 million unrealized loss on Coinbase's cryptocurrency investment portfolio, including Bitcoin and other altcoins. Further losses came from strategic investments, particularly a $395 million loss related to its stake in Circle, the USDC stablecoin issuer. Despite these losses, Coinbase maintains a strong cash position, holding $11.3 billion in cash and cash equivalents at year-end.

  • Coinbase reported a net loss of $667 million for the fourth quarter of 2025.
  • In the same period the previous year, Coinbase recorded a $1.3 billion profit.

The players

Coinbase

America's largest cryptocurrency exchange.

Hyperliquid

A decentralized derivatives platform that recently recorded $2.6 trillion in trading volume, nearly double Coinbase's $1.4 trillion during the same period.

Circle

The USDC stablecoin issuer, in which Coinbase has a stake.

Taylor Monahan

A researcher who pointed out that at least $350 million in losses experienced by Coinbase users in 2025 could have been prevented, highlighting deficiencies in the company's user protection systems.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.