Coinbase’s total revenue in Q1 dropped 10% quarter-over-quarter to $2 billion, falling short of industry estimates by 4.1%. This decline was attributed to decreased trading activity as crypto prices fell, leading to a 95% decrease in net income from $1.29 billion in Q4 to $66 million, largely due to a $596 million paper loss on crypto holdings. Despite the downturn, Coinbase's earnings per share of $1.94 exceeded the Zacks Consensus Estimate of $1.85. Transaction revenue experienced a significant decline, down 18.9% to $1.26 billion, with trading volumes also decreasing by 10.5% to $393 billion. On a positive note, revenue from subscriptions and services rose 8.9% to $698.1 million, primarily driven by stablecoin sales. Additionally, Coinbase gained market share in global spot and derivatives trading and is expanding into emerging markets like Argentina and India. Recently, Coinbase announced the acquisition of the crypto derivatives platform Deribit for $2.9 billion, enhancing its presence in the derivatives market, although shares experienced a slight pullback after the Q1 results were released.

Source 🔗