Coinbase shares experienced a decline as the company’s first-quarter revenue fell short of Wall Street’s expectations, despite an increase in stablecoin revenue. In the quarter ending March 31, Coinbase reported earnings of $65.6 million, or 24 cents per share, compared to $1.18 billion, or $4.40 per share, from the previous year. After excluding the impact of crypto investments, Coinbase’s adjusted earnings amounted to $527 million, or $1.94 per share. Revenue increased to $2.03 billion from $1.64 billion the previous year but missed the $2.12 billion consensus estimate from LSEG. Transaction revenue reached $1.26 billion, while subscription and services revenue totaled $698.1 million in the quarter. Consumer trading volume dropped 17% from the fourth quarter to $78.1 billion, partly due to reduced expectations regarding regulatory changes under President Trump. Institutional trading volume also fell by 9% to $315 billion. Despite these setbacks, Coinbase anticipates subscription and service revenue between $600 million and $680 million for the second quarter. Stablecoin revenue growth may be offset by lower blockchain rewards due to declining asset prices. Earlier, Coinbase announced its intention to acquire Deribit, a Dubai-based crypto derivatives exchange, for $2.9 billion, marking the largest deal in the crypto industry thus far. This acquisition aims to expand Coinbase’s global presence beyond the U.S. market. In after-hours trading, Coinbase stock dropped by 2%. \n— new from CNBC
