Coinbase Q2 revenue misses estimates as market share and USDC balances rise

Coinbase's disappointing second-quarter results continued to reverberate through crypto-linked equities on Friday, with the exchange's shares falling 15% to $139.55 and leading declines across the sector as Bitcoin dropped below $64,000. Bitcoin was down 3% over the past 24 hours at $62,478.40, while Strategy fell 8% to $89.84, Bitmine Immersion Technologies lost 8% to $16.62 and the iShares Bitcoin Trust slid 4% to $35.37. Coinbase reported a second-quarter net loss of $359 million, or $1.36 per share, as net revenue fell 17% to $1.15 billion. Transaction revenue dropped 22% to $600 million and adjusted EBITDA fell 59% to $208 million, with management citing a 25% quarter-over-quarter decline in crypto spot trading volume and multi-year lows in volatility. The company had previously said the quarter reflected one of the softest trading environments in years even as it gained market share, increased USDC balances and expanded derivatives, subscriptions and Base. Analysts remained divided on whether the weak quarter mainly reflected market conditions or the limits of Coinbase's diversification efforts, and the results prompted a fresh round of price-target cuts. CEO Brian Armstrong said Coinbase "is no longer a bet just on the price of Bitcoin," pointing to subscriptions, stablecoins, custody and derivatives. Strategy also posted a steep second-quarter loss, reporting a net loss of $8.22 billion, or $24.45 per diluted share, driven by an $8.32 billion unrealized loss on its bitcoin holdings under fair-value accounting. The company held 846,000 Bitcoin as of June 30 at an average cost of $75,578 per coin. Management said the loss was primarily an accounting effect, while noting bitcoin holdings rose 11% in the quarter and the company built a $3.75 billion U.S. dollar reserve. Bitmine's decline appeared tied to broader weakness in crypto assets and to recent pressure after ARK Invest trimmed its stake, while IBIT moved lower in line with spot bitcoin prices. Traders are watching whether Bitcoin holds support into the weekend and whether selling pressure in Coinbase stabilizes around the $140 level.