Coinbase revenue falls 10% in Q1, missing industry estimate

Coinbase's Q1 2024 revenue fell 10% to $2 billion, slightly missing estimates due to decreased trading activity. Net income plummeted 95% to $66 million, largely due to a $596 million loss on crypto holdings. Earnings per share still beat expectations at $1.94. Transaction revenue also declined by 18.9%, mirroring a 10.5% drop in trading volume. Conversely, subscription and services revenue increased by 8.9%, driven by stablecoin revenue. Coinbase reported increased market share and expansion into new markets. A dismissed lawsuit against the US securities regulator was hailed as a victory. The company acquired Deribit for $2.9 billion, becoming a leader in crypto derivatives trading. This acquisition boosted Coinbase's share price initially, but it later saw a slight decline. The Deribit deal significantly expands Coinbase's presence in the derivatives market.