<div id="readability-page-1"><p><img width="1152" height="720" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/06/How-high-can-Fartcoin-crypto-price-rise-following-its-Coinbase-listing.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/06/How-high-can-Fartcoin-crypto-price-rise-following-its-Coinbase-listing.png"/></p><p>Coinbase stock price crashed by over 10% on Friday after the company published its financial results and as Bitcoin plunged below $115,000. COIN dropped to $335, down by over 24% from its highest point this year. This article explores the top takeaways in its earnings report and the implications to the stock.</p><h2>Coinbase revenue growth decelerated in Q2</h2><p>The first main takeaway in Coinbase’s earnings report is that its business remained under pressure in the second quarter, with its key divisions seeing tepid growth. </p><p>Coinbase’s total revenue rose to $1.42 billion in the second quarter from $1.37 billion a year earlier. This revenue was much lower than what it made in the previous quarter. </p><p>The revenue slowdown was understandable as the crypto market remained in a tight range during the quarter. Historically, Coinbase thrives when Bitcoin and other altcoins are in a strong bull run. </p><p>Coinbase’s transaction revenue plunged to $764 million from $780 million in the same period last year. It also dropped sharply from $1.26 billion from the first quarter. </p><p>This slowdown was offset by the subscription and services revenue, which rose from $599 million to $655 million. This is a significant business with resilient segments, including stablecoins, blockchain rewards, and other subscription-based revenue streams.</p><p>Read more: Bitcoin price prediction for August: buy or sell?</p><h2>Custody business not thriving despite asset growth</h2><p>The other key takeaway in the Coinbase earnings report was that it is not necessarily benefiting from its custody business. While the total assets under custody grew to $247 billion in Q2 and the market share rose to 80%, the fee growth was not all that strong. </p><p>The company blamed this on the ‘blended fee rates driven by customer mix and lower non-BTC asset prices.’ This business, together with its Coinbase One solution, explains why the “other subscription and services” revenue dropped by 15% QoQ.</p><h2>Coinbase costs are jumping</h2><p>The other notable takeaway in the report was that the company’s costs are accelerating, which is affecting its business. Management expects that its technology and development and SG&amp;A costs will be between $800-$850 million in the third quarter. </p><p>These costs are growing because of its headcount is accelerating at a faster pace than expected. These workers are growing in its international markets and new product launches. Some of the growth metrics will be in the form of stock-based compensation. </p><h2>Valuation concerns persist</h2><p>Further, there are signs that the Coinbase stock price is highly overvalued considering that its revenue growth is not all that strong. </p><p>While analysts see a 40% revenue growth in the third quarter, the annual figure is expected to be 12.9% to $7.42 billion. Analysts also predict a 2026 revenue of $8.26 billion.</p><p>At the same time, Coinbase has a forward price-to-earnings ratio of 70, which is much higher than the sector median of 10. The multiple is much higher than other companies, including NVIDIA, which has a higher growth rate.</p><h2>Coinbase stock price analysis</h2><figure><img width="1024" height="570" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/08/Coinbase-stock-1024x570.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/08/Coinbase-stock-1024x570.png"/></figure><p>COIN stock chart | Source: TradingView</p><p>The daily chart shows that the COIN stock price crashed from the closing price of $377 to $333 in the premarket today. It crashed below the key support level at $348, its highest point in December last year. The Relative Strength Index (RSI) and the MACD continued falling. </p><p>Therefore, the stock will likely remain under pressure in the near term and then bounce back if Bitcoin and other cryptocurrencies recover.</p><p>The post Coinbase earnings highlights and COIN stock implications appeared first on Invezz</p></div>

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<p>Coinbase's stock price fell over 10% after the company reported Q2 earnings, with revenue growth slowing to $1.42 billion. Transaction revenue dropped significantly, while subscription revenue rose. Despite an increase in assets under custody, fee growth was weak. Rising costs are expected to reach $800-$850 million in Q3. Analysts express concerns over the stock's high valuation, with a forward P/E ratio of 70. The stock is likely to remain under pressure unless the cryptocurrency market recovers.</p>

- Coinbase's stock price fell over 10% after its Q2 financial results showed revenue growth deceleration, with total revenue at $1.42 billion, lower than the previous quarter.  
- The company's custody business is not thriving despite asset growth, and costs are rising due to increased headcount and product launches, with expected costs between $800-$850 million in Q3.  
- Analysts express concerns over Coinbase's high valuation, with a forward price-to-earnings ratio of 70, significantly above the sector median of 10, indicating potential pressure on the stock in the near term.  