Coinbase stock fell Friday on its Q1 results late Thursday. The earnings follow news that the crypto exchange has reached a $2.9 billion deal to buy Deribit, a crypto options platform. Meanwhile, the price of bitcoin rallied above $100,000 for the first time since February.
Coinbase reported earnings of 24 cents per share, compared to earnings of $4.40 per share last year. Revenue increased 24% to $2.03 billion.
FactSet expected earnings of $1.93 per share on nearly $2.1 billion in revenue.
Transaction revenue increased 17% from last year to $1.26 billion, short of views for $1.39 billion.
Consumer transaction revenue came in at nearly $1.1 billion for the quarter, but analysts expected $1.18 billion. Institutional transaction revenue of $98.9 million also missed estimates for $127 million. The figures were up year over year but down from Q4.
Consumer trading volume was down 17% from Q4 while institutional volume fell 9% from the last quarter.
Subscription and services revenue were $698 million, up from from $511 million last year and $641 million in Q4, respectively. However, analysts expected $702 million in revenue for the segment.
Coinbase noted that it generated around $240 million in total transaction revenue in April. The crypto exchange expects Q2 subscription and services revenue to range from $600 million to $680 million. The guidance was below FactSet estimates of $703 million in revenue for the segment.
$2.9 Billion Deal
Meanwhile, Coinbase has agreed to acquire crypto options trading platform Deribit for $2.9 billion, the company announced Thursday.
Dubai-based Deribit is the world's biggest trading platform for bitcoin and ether options, and also offers futures and spot trading.
Greg Tusar, Coinbase's VP of institutional product, told the WSJ that the deal will make the exchange "the most comprehensive player in derivates."
The $2.9 billion price tag consists of $700 million in cash and 11 million shares of COIN stock.
Coinbase Stock
Coinbase stock slid 3.5% Friday on results. COIN stock jumped 5% during Thursday trade. Shares are up more than 40% from their mid-April low, having reversed from a three-month decline.
Still, shares are down nearly 20% so far this year.
Bitcoin traded around $103,300 late Friday, slightly off its overnight high near $104,300 according to CoinMarketCap data. The price of bitcoin has climbed more than 6% this week as trade talks advance, with negotiations with China set to resume this week. Bitcoin hasn't traded above $100,000 since early February.
The world's largest cryptocurrency is now up 10% in 2025, but still off its January record high above $109,000.
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