The publicly traded cryptocurrency exchange based in the U.S., Coinbase, experienced its most challenging quarter since the downfall of the FTX exchange in 2022.
On January 2, 2025, Coinbase shares opened trading at just above $257 but fell to slightly over $172 by March 31, marking a decline of 33%, according to market data.
This downturn signifies the worst quarterly performance for Coinbase’s stock since the FTX collapse in November 2022. In the latter part of that year, its stock price plummeted from nearly $66 on October 3 to $35.4 by December 30, representing a 46.4% decrease.
Year-to-date price trend for Coinbase shares. Source: Google Finance
Coinbase has established a significant presence in the cryptocurrency market. Its position is so prominent that industry experts have recently expressed concerns regarding network centralization, noting its role as the largest node operator on the Ethereum network.
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Coinbase is anticipated to disclose its financial results for 2025 in early May. The company’s latest shareholder letter indicates generated transaction revenue of approximately $750 million through February 11, alongside projected subscription revenue of between $685 million and $765 million. While the Q1 profit figures have yet to be reported, analysts estimate them to be about $1.87 billion.
A significant downturn in crypto
Many publicly traded cryptocurrency companies reported similarly disappointing results for the first quarter of 2025. Major cryptocurrency mining company Marathon Digital Holdings began Q1 at roughly $17.50 and concluded it at $11.00, resulting in a loss exceeding 37%.
Another mining competitor, Riot Platforms, started the quarter at just below $10.50 and ended at $7.12, a drop of more than 32%. Bitfarms, specializing in energy infrastructure and crypto mining, commenced the year at $1.56 and wrapped up the first quarter at $0.7882, nearly halving its market value.
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Hut 8, another datacenter and crypto mining enterprise, opened the year at $21.10 and concluded the quarter at $11.62, representing a nearly 45% decrease. The company continues to struggle against this trend, even after announcing a partnership with the sons of U.S. President Donald Trump to launch “American Bitcoin,” aiming to establish the largest Bitcoin mining operation with strategic reserves.
The trend persists. Hive Digital Technologies, involved in datacenter and mining activities, saw its stock fall from $2.97 to $1.45 during Q1, losing over half its value. Lastly, mining hardware manufacturer Canaan Creative started the quarter at $2.11, ending at $0.8778, a nearly 58.4% decline.
Geopolitical influences
The broader stock market has also experienced notable declines, largely attributed to recent geopolitical changes. The S&P 500, a major U.S. stock index, started Q1 at 5,890 and fell to 5,610, a loss exceeding 4.75%.
Market participants are feeling anxious as President Donald Trump intensifies a trade feud on various fronts. Recent reports suggest that worries over a global trade conflict are affecting both traditional and cryptocurrency markets, with investors preparing for a potential tariff announcement on April 2.
Alex Obchakevich, founder of Obchakevich Research, commented: “Trump’s tariffs are heavily impacting the market, rendering it highly unpredictable.” He noted that Strategy (formerly MicroStrategy) has performed surprisingly well, with its stock dropping only about 3.95%, going from $300.11 to $288.27 during Q1 2025. He stated:
“Its stock has remained stable due to a bet on Bitcoin and a 400% growth in 2024.”
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