(Reuters) -Coinbase Global reported a drop in adjusted profit for the second quarter on Thursday, as gains in subscription and services revenue were offset by weaker trading activity amid reduced cryptocurrency volatility.
Retail crypto trading volumes remained sluggish in the second quarter as investor appetite remained muted amid market uncertainty and inflationary pressures, despite a rebound in crypto prices.
A bullish crypto market also prompted many retail investors to hold on to their digital
assets in anticipation of higher returns, limiting trading activity. Crypto asset volatility was down 16% on a sequential basis, the company said.
Transaction revenue fell 2% to $764.3 million from a year earlier. However, revenue from the company's subscription and services unit — which includes businesses outside of trading — rose 9.5% to $655.8 million.
A portion of Coinbase's subscription and services revenue is derived from stablecoin holdings and related platform activities. The company also benefited from optimism surrounding the stablecoin legislation passed during the quarter.
The U.S. House of Representatives passed the so-called "Genius Act" earlier this month, sending the bill to President Donald Trump, who signed it into law.
The bill aims to create a regulatory framework for stablecoins and promote broader adoption.
Shares of the company, which have gained nearly 54% in 2025 on crypto enthusiasm and its addition to the benchmark S&P 500 index, fell 4% in extended trading.
Adjusted net income came in at $33.2 million, or 12 cents per share, in the three months ended June 30, compared with $294.4 million, or $1.10 apiece, a year earlier.
Net profit, which surged compared to the year-ago period, was largely driven by gains from the fair value remeasurement of the company's investment in stablecoin issuer Circle and gains from its crypto asset investment portfolio, Coinbase said.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
