In a striking display of the volatility characterizing the cryptocurrency market, Coinbase has reported its worst quarterly performance since the collapse of the FTX exchange in November 2022. Starting the year at over $257 per share, Coinbase’s stock plummeted to just above $172 by the end of March 2025, reflecting a staggering decline of 33%.
This downturn marks a significant financial hardship for Coinbase, which previously experienced a 46.36% drop in its share price during the fourth quarter of 2022, falling from nearly $66 to $35.4. Such performance has left many investors and industry observers uneasy.
Coinbase shares year-to-date price chart. Source: Google Finance
Despite this setback, Coinbase has maintained a significant position in the cryptocurrency market. Experts have pointed out that its dominance as the largest node operator on the Ethereum network raises concerns regarding potential over-centralization.
Looking ahead, Coinbase is set to release its financial results for the first quarter of 2025 in early May. Recent shareholder communications revealed that the firm generated approximately $750 million in transaction revenue by mid-February and is expecting subscription revenues between $685 to $765 million. Analysts estimate that the company’s Q1 profits could reach around $1.87 billion.
A Broad Industry Downturn
Coinbase’s struggles are echoed throughout the broader cryptocurrency landscape, with numerous publicly traded crypto firms reporting similar results. Notably, major player Marathon Digital Holdings experienced over a 37% drop, with shares falling from nearly $17.5 at the beginning of the quarter to $11. Additionally, Riot Platforms and Bitfarms reported declines of more than 32% and nearly 50%, respectively.
Moreover, Hut 8, a key player in the data center and mining sector, started the quarter at $21.1, closing at $11.62—a nearly 45% loss. This decline persists in the context of its recent initiatives, including a partnership to launch a significant Bitcoin mining operation alongside US political figures.
Further disheartening news comes from Hive Digital Technologies and Canaan Creative, which reported losses of over 50% and nearly 58.4% respectively during the same period.
The Impact of Geopolitical Changes
The difficult circumstances facing Coinbase and other crypto companies can be attributed to broader market dynamics, particularly influenced by geopolitical factors. The S&P 500, a significant US stock market index, declined approximately 4.75% as investor uncertainty increased amidst trade tensions, particularly with recent tariff threats from the US government.
Industry analysts, including Alex Obchakevich of Obchakevich Research, have noted that unpredictable geopolitical events are contributing to market fluctuations. Some companies, however, continue to perform comparatively well, with Strategy (formerly MicroStrategy) experiencing a minor decline of less than 4%, a testament to their investment in Bitcoin and substantial growth in 2024.
As market participants brace for potential impacts from looming tariffs and other geopolitical shifts, the coming months will be crucial in determining the resilience of companies in the cryptocurrency sector.
