Coinbase reports massive Q4 2025 loss as crypto markets crash

The crypto exchange giant suffered a $666.7 million net loss amid plunging Bitcoin prices and investment write-downs.

Published on Feb. 12, 2026

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Coinbase Global, the largest cryptocurrency trading platform in the U.S., reported a staggering $666.7 million net loss for the fourth quarter of 2025 as the crypto market downturn took a heavy toll on the company's finances. The loss was driven by a $718 million hit on Coinbase's crypto investment portfolio and a $395 million loss tied to strategic investments, despite the company's core operations remaining profitable.

Why it matters

Coinbase's massive Q4 loss highlights the volatility and risks inherent in the crypto industry, which has seen a dramatic downturn since Bitcoin's record high in October 2025. The results raise questions about Coinbase's long-term growth prospects and its ambitious plans to become an "Everything Exchange" for all asset classes.

The details

Coinbase reported $1.78 billion in total revenue for Q4 2025, down 5% from the previous quarter. Transaction revenue fell 6% to $983 million, with $734 million from retail trading and $185 million from institutional activity. Subscription and services revenue came in at $727 million, including $364 million from stablecoins and $152 million from blockchain rewards. Despite the headline loss, Coinbase's core operations remained profitable, with adjusted net income of $178 million and adjusted EBITDA of $566 million.

  • Bitcoin hit a record high price of $126,080 in early October 2025.
  • Coinbase reported its Q4 2025 financial results on February 12, 2026.

The players

Coinbase Global

The largest cryptocurrency trading exchange in the United States, founded in 2012 by Brian Armstrong and Fred Ehrsam and went public in 2021.

Brian Armstrong

The co-founder and CEO of Coinbase.

Fred Ehrsam

The co-founder of Coinbase.

Kenneth Worthington

A JPMorgan Chase analyst who lowered Coinbase's stock price target from $399 to $290 and reiterated an "Overweight" rating.

Scott Bessent

The former Treasury Secretary under the Donald Trump administration, who criticized Coinbase CEO Brian Armstrong's remarks about the Clarity Act.

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What they’re saying

“We'd rather have no bill than a bad bill.”

— Brian Armstrong, CEO, Coinbase (Yahoo Finance)

What’s next

Coinbase is still engaged in negotiations with lawmakers regarding the Clarity Act legislation, which could have significant implications for the company's future operations.

The takeaway

Coinbase's massive Q4 loss underscores the volatility and risks inherent in the crypto industry, which has seen a dramatic downturn since Bitcoin's record high. The results raise questions about Coinbase's long-term growth prospects and its ambitious plans to become an "Everything Exchange" for all asset classes, as the company navigates a challenging regulatory environment and market conditions.