coinbase_q1_report
Coinbase (COIN) Shares Decline by Over 30% in Q1 2025
According to Bloomberg, Coinbase (COIN) shares dropped by more than 30% in the first quarter (Q1) of 2025 due to increasing concerns over the US economy and its impact on digital assets. The stock opened 2025 at just over $257 on January 2nd and closed the quarter at a little over $172.
Coinbase and Other Crypto-Linked Stocks Plummet
Coinbase Global Inc. shares, along with those of other companies associated with crypto assets, saw significant declines this quarter as fears about the US economy weighed on digital assets. Google Finance data showed a nearly 33% drop, marking Q1 2025 as the worst quarter for Coinbase’s stock performance since the collapse of FTX in November 2022. In Q4 2022, Coinbase’s stock price fell from $66 on October 3rd to $35.4 on December 30th, representing a loss of almost 46.4%.
Coinbase is expected to release its 2025 financial statements in early May. The company’s recent shareholder letter stated that it generated approximately $750 million in transaction revenue as of February 11th and expects subscription revenue to range between $685 million and $765 million.
Coinbase Drops Over 30% YTD Amid Market-Wide Decline
Source: Google Finance
Coinbase Stock Price Performance YTD
According to Google Finance, Coinbase shares fell by 33% in Q1 2025, declining from $257 on January 2nd to $172 on March 31st. This marked Coinbase’s worst quarter since Q4 2022 when its stock dropped by 46.4% following the FTX collapse. The decline mirrored a broader trend affecting most major crypto-linked stocks, including Galaxy Digital Holdings (GLXY.TO), Riot Platforms (RIOT), and Core Scientific (CORZ).
Crypto Market Downturn Affects Publicly Traded Companies
Most publicly traded crypto firms reported negative results in Q1 2025. According to Yahoo Finance, the state of the crypto market had deteriorated significantly from the beginning of the year when optimism surged after Trump’s election. The S&P 500 Index (^GSPC) also headed for its worst quarter since mid-2022 after a series of economic reports heightened investor concerns. As a result, traders quickly withdrew from riskier assets, including digital assets.
See also: Gen Z Americans Are Losing Faith in the Economy One Meme at a Time
Analysts noted that crypto-linked stocks were even riskier and more volatile than Bitcoin itself, as investing in a company carries additional risks, such as bankruptcy.
The downturn extended beyond Coinbase, affecting Bitcoin miners as well. MARA Holdings (MARA) lost 31%, Riot Platforms (RIOT) declined over 30%, and Core Scientific (CORZ) plummeted by 48%. Meanwhile, CleanSpark (CLSK) shed 27%, and Hut 8 (HUT) fell by 43%. MicroStrategy (MSTR), which has heavy Bitcoin exposure, also saw a slight decline.
Datacenter and mining firm Hive Digital Technologies saw its stock price drop from $2.97 to $1.45 in Q1, losing over half its value. Mining hardware manufacturer Canaan Creative started the quarter at $2.11 and closed at $0.8778, marking a nearly 58.4% decline.
Analysts have warned that conditions may worsen as President Trump’s “Liberation Day” approaches on April 2nd, when aggressive tariffs are set to take effect. The combination of tariffs, potential trade wars, and recession fears is driving investors away from riskier assets.
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