Coinbase’s second-quarter earnings revealed a mixed picture for investors. The company missed revenue expectations but saw a narrow decline in trading volume, leading its stock to drop 15%. However, the market focus on typical earnings metrics overlooked three significant one-off numbers that are crucial to Coinbase’s short- and long-term future.
The first notable number is $1.5 billion, reflecting “pretax gains on strategic investments,” which includes an unrealized gain on Circle’s IPO. Even if Circle stock declines in value, Coinbase will retain a large and liquid investment it can cash out during downturns or use to fuel its acquisition spree.
Coinbase also has stakes in other crypto firms that are expected to go public, potentially yielding more gains like the one reported. The company is sitting on a significant investment opportunity as the market matures.
On a less positive note, Coinbase disclosed $307 million in expenses related to a data theft incident in May. The hacking episode saw criminals defraud customers by posing as Coinbase employees, resulting in reputational damage and ongoing legal costs. However, this cost is seen as a win compared to potential class action lawsuits and state regulator payouts.
Lastly, the company reported a $362 million pretax gain on its crypto investment portfolio, largely unrealized, reflecting recent developments including increased crypto asset prices and changes in accounting rules allowing companies to record crypto gains as they accrue. These one-off numbers are essential to understanding Coinbase’s performance beyond typical earnings metrics.
Source: https://fortune.com/crypto/2025/08/01/coinbase-circle-profit-earnings