Coinbase reported $1.22 billion in second-quarter revenue on Thursday, marking a 14% decline from the prior quarter and a 19% drop year-over-year, alongside a net loss of $359 million. Shares of Coinbase (COIN) fell approximately 5% in after-hours trading.

The earnings miss was broad-based. Revenue fell short of the $1.29 billion consensus estimate from Wall Street analysts, and the per-share loss of $1.36 was significantly worse than the roughly break-even result that had been projected.

Total cryptocurrency spot trading volume declined more than 20% from the previous quarter as prices slid and volatility reached multi-year lows. The slowdown reflects a broader cooling across digital-asset markets during the quarter, when compressed price action reduced the trading activity that historically drives exchange revenue. This downturn dragged transaction revenue down 21% to $599 million.

Subscription and services revenue also came in below expectations, despite representing the less trading-dependent segment of the business. Coinbase attributed the shortfall to late-closing USDC commercial agreements and reduced staking revenue driven by falling token prices. The miss undercut the narrative that the company's diversified business lines have decoupled from the crypto trading cycle.

There were bright spots in the report. Stablecoin revenue reached $292 million, with average USDC held on Coinbase products hitting a record $20 billion—more than 30% of all USDC in circulation. Prediction-market revenue more than doubled quarter over quarter, rising 106% and surpassing a $100 million annualized run rate, as platforms like Kalshi and Polymarket drew surging user interest in event-based wagering.

Coinbase's share of global crypto trading volume reached a record 10.3%, marking its third consecutive quarter of market-share gains. The company reported that 88% of net revenue now originates from sources other than Bitcoin spot trading, up from 45% in 2020. Coinbase also held $8.6 billion in cash, extended a 14-quarter streak of positive adjusted EBITDA, and lowered its full-year expense outlook.

The results invite a comparison between Coinbase and Robinhood. Both companies reported shrinking crypto trading revenue and surging prediction-market activity, yet Robinhood posted record profit while Coinbase recorded an outright loss. Coinbase remains more heavily exposed to the trading cycle it is attempting to outgrow, and does not yet match Robinhood's breadth of large-scale product lines. Third-quarter guidance from Coinbase appears soft.

Macro, Crypto and Traditional Markets

Crypto majors traded slightly lower: BTC was down 2% at $63,700, ETH fell 2% to $1,880, SOL declined 1% to $73.40, and HYPE gained 3% to $54.90. Top alternative token movers included UNI (+5%), PUMP (+5%), and ADA (+3%).

In traditional markets, oil rose 1% to $85 and gold gained 1% to $4,115. U.S. stock futures were positive as technology and memory chip shares advanced, with the Dow up 0.5% and the Nasdaq up 1.2%.

Strategy, the software firm turned Bitcoin treasury company formerly known as MicroStrategy, booked an $8.2 billion Q2 loss as Bitcoin fell below the company's cost basis of $75,476 per coin. Strategy operates as the largest publicly traded corporate holder of Bitcoin, and the loss underscores how leveraged Bitcoin accumulation strategies amplify exposure during price drawdowns. The loss was far steeper than the $2.15 billion Wall Street had expected. However, Strategy increased its Bitcoin holdings by 11% and stated that its cash reserves can cover more than two years of dividend payments.

Cathie Wood's Ark Invest sold approximately $4.4 million in shares across BitMine, Robinhood, Block, and Bullish following declines in those stocks, while recently purchasing roughly $43.5 million worth of Coinbase and Circle shares.

Treasury Secretary Scott Bessent urged the Senate to pass the CLARITY Act, legislation that would establish a division of regulatory authority over digital assets between the CFTC and SEC, accusing Democrats of stalling the legislation for political reasons. He closed his appeal by quoting Satoshi Nakamoto: "If you don't believe me or don't get it, I don't have time to try to convince you, sorry."

The potential quantum threat to Bitcoin drew renewed attention as IBM claimed a "trusted quantum advantage", a milestone that increases urgency around strengthening Bitcoin's cryptographic foundations. Bitcoin's security model relies on elliptic-curve cryptography, which sufficiently powerful quantum computers could theoretically break.

Elon Musk's xAI sued the state of Minnesota to block the United States' first AI nudification law, challenging the legislation on free-speech grounds.

Real-world-asset tokenization firm Ondo Finance is considering an acquisition worth up to $500 million as it seeks to expand through mergers and acquisitions.

Corporate Treasuries and ETFs

Bitcoin ETFs recorded $233 million in net inflows on Thursday, marking the second-largest inflow day since early May. Ethereum ETFs saw $13 million in inflows.

Token, Protocol and Regulatory Tracker

The New York Attorney General filed a petition to shut down prediction-market platform Kalshi in New York State, alleging it operates an illegal gambling operation. The petition seeks at least $36 billion in damages. The action signals intensifying regulatory scrutiny of prediction markets, even as major crypto exchanges increasingly pivot toward the category.

Pons went live on Uniswap's Launches aggregator, reporting more than 210,000 tokens launched in two weeks and over $283 million in volume through Uniswap pools. A v2 release is planned on Uniswap v4 to bridge memecoins and real-world assets on Robinhood Chain. PONS traded down 12% to a $28 million market capitalization.

A Coldcard key flaw resulted in $38 million in Bitcoin losses, with 594 BTC swept from approximately 500 wallets in 25 minutes. Coldcard, manufactured by Coinkite, is a widely used Bitcoin-only hardware wallet designed for offline cold storage. A build error had left wallet seeds far more guessable than intended. Coinkite believes an attacker used AI to discover the vulnerability in its open-source firmware—a flaw that the company's own AI review had missed weeks earlier.

Meme Coin Tracker

Meme coin leaders were mixed: DOGE was down 1%, SHIB was flat, PEPE fell 1%, PENGU gained 4%, TRUMP declined 2%, and BONK dropped 5%. On the Robinhood chain, FRONG surged 600x and IF gained 74%. Solana leaders included Moondogecoin (+300x) and KET (+60%), while ANSEM traded up 4% at a $178 million market capitalization.

NFT Markets

NFT leaders were predominantly lower. CryptoPunks held flat at 32.3 ETH, BAYC declined 1% to 8.3 ETH, and Pudgy dropped 4% to 3.8 ETH. Hypurr remained even at 189 HYPE. There were no notable movers.