Coinbase Shares Plunge 33% in Q1 2025 Amid Crypto Market Downturn
1min read Coinbase, a publicly traded US-based crypto exchange, experienced its most challenging quarter since the collapse of FTX in 2022. The company's shares began the year at approximately $257 on January 2 and concluded the quarter at around $172 on March 31, marking a 33% decline. This performance is the worst for coinbase since the fourth quarter of 2022, when its share price dropped from nearly $66 to $35.4, a loss of 46.4%.
Coinbase has established a strong presence in the crypto market, with some industry experts expressing concerns about network centralization due to its emergence as the Ethereum network’s largest node operator. The company is expected to release its 2025 financials in early May. According to a recent shareholder letter, Coinbase generated about $750 million in transaction revenue through February 11 and anticipates subscription revenue of $685 million to $765 million. MarketBeat analysis estimates Coinbase's Q1 profit figures to be around $1.87 billion, although the company has not yet released its Q1 profit figures.
The crypto industry as a whole faced a significant downturn in the first quarter of 2025. Major crypto mining firms such as Marathon Digital Holdings, Riot Platforms, and Bitfarms all reported substantial losses. Marathon Digital Holdings saw a loss of over 37%, Riot Platforms lost over 32%, and Bitfarms lost nearly half its value. Other firms like Hut 8, Hive Digital Technologies, and Canaan Creative also experienced significant declines, with Hut 8 losing nearly 45%, Hive Digital Technologies losing more than half its price, and Canaan Creative losing nearly 58.4%.
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The broader stock market also took a hit, with the S&P 500 index losing over 4.75% due to recent geopolitical shifts. Market participants are uncertain as the United States continues to wage a trade war on multiple fronts. Concerns over a global trade war are pressuring both traditional and cryptocurrency markets as investors brace for potential US tariff announcements. The founder of Obchakevich Research, Alex Obchakevich, noted that Trump’s tariffs are making the market unpredictable. However, Strategy, formerly known as MicroStrategy, has held up surprisingly well, with its price losing just under 3.95% during the first quarter of 2025. This resilience is attributed to the company's bet on Bitcoin and its 400% growth in 2024.
