Coinbase's recent earnings reveal a significant decline in revenue and net operating earnings, resulting in a sharp drop in share price and increased demand for put options.
Coinbase shares fell 19.6% to $314.69 last week after the company reported second-quarter earnings showing a net operating earnings per share of 12 cents, an 88.8% year-over-year decrease. Revenue of $1.5 billion missed estimates, while EBITDA declined to $512 million, driven by a 39% drop in transaction revenue. The sell-off aligns with previous warnings from crypto research firm 10x about an overstretched price rally. Demand for COIN put options has surged, with the one-year put-call skew reaching 2.6%, indicating heightened investor concern.