Feb 12 (Reuters) - Cryptocurrency exchange Coinbase Global reported a fourth-quarter loss on Thursday, hit by weaker trading volumes during a period of broad digital-asset selloff.
Digital assets slumped in the final three months of 2025, retreating from early October record highs after U.S. President Donald Trump announced new tariffs on Chinese imports and threatened export controls on critical software.
Sentiment remained largely downbeat for the sector, curbing volatility and, in turn, hurting
the cryptocurrency exchange's trading desks.
Cryptocurrency exchanges often benefit from volatility in the sector as they earn more through transactions with investors seeking to hedge their portfolios.
Coinbase's transaction revenue nearly fell to $982.7 million during the quarter, from $1.56 billion a year earlier. The drop was largely driven by a more than 45% drop in consumer transaction revenue.
"Crypto is cyclical, and experience tells us it's never as good, or as bad as it seems," Coinbase said in its shareholder letter.
Shares were last up 1.3% in volatile extended trading. The stock is down nearly 40% this year.
Bitcoin, the world's largest cryptocurrency, has nearly halved since its October 6 peak.
Investors also pulled money from spot bitcoin ETFs, which had helped drive the crypto rally in early 2025. U.S. spot bitcoin ETFs saw withdrawals of $7 billion in November, about $2 billion in December and more than $3 billion in January.
The company reported a loss of $666.7 million, or $2.49 per share, for the three months ended December 31, compared with $1.29 billion, or $4.68 per share, a year earlier.
However, the cryptocurrency exchange reported a rise in subscription and services revenue, jumping 13.5% to $727.4 million in the quarter, helped by a steady growth from its stablecoin operations.
Stablecoin revenue rose to $364.1 million from $225.9 million in the year-ago period.
(Reporting by Pritam Biswas and Ateev Bhandari in Bengaluru; Editing by Sriraj Kalluvila)
