Coinbase's Q1 Earnings Miss Sparks Stock Slide as Bitcoin Soars Past $100,000

Coinbase stock experienced a downturn early Friday following its Q1 earnings report, which fell short of expectations. The crypto exchange reported earnings of 24 cents per share, a significant drop from $4.40 per share last year, despite a 24% increase in revenue to $2.03 billion. Analysts had anticipated earnings of $1.93 per share on nearly $2.1 billion in revenue.

Transaction revenue saw a 17% year-over-year increase to $1.26 billion but missed the forecasted $1.39 billion. Both consumer and institutional transaction revenues fell short of expectations, with consumer trading volume down 17% from Q4 and institutional volume dropping 9%.

In a bold move, Coinbase announced a $2.9 billion acquisition of Deribit, a leading crypto options trading platform. This acquisition, consisting of $700 million in cash and 11 million shares of COIN stock, aims to position Coinbase as a comprehensive player in the crypto derivatives market.

Meanwhile, Bitcoin surged above $100,000 for the first time since February, trading around $103,000 early Friday. This marks a 6% increase for the week, with the cryptocurrency now up 10% in 2025, though still below its January peak above $109,000.