Cooling market and more layoffs bode ill for crypto exchange
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Brian Armstrong, Coinbase
Crypto exchange Coinbase posted a loss on Thursday for the second quarter in a row. Trading in cryptocurrencies has cooled sharply due to lower prices, tighter financial conditions and persistent economic uncertainty.
Coinbase’s share price fell by around 5% in after-hours trading and is now down almost 15% in 2026. According to chief financial officer Alesia Haas, both the total crypto market value and trading volume declined by more than 20% quarter-on-quarter.
Transaction revenue dropped by roughly 40% to $756 million. Income from subscriptions and services – activities outside the trading platforms – also fell, by 13.5% to $583.5 million. In total, quarterly revenue came to about $1.41 billion, compared with just over $2 billion a year earlier. Net loss amounted to $394 million, whereas the company was still making a profit last year.
The broader crypto market is struggling as investors are less willing to take risks. Tensions in the Middle East and uncertainty about the global economy have pushed investors towards safer assets. As a result, cryptocurrencies are increasingly moving in tandem with traditional financial markets, meaning companies like Coinbase benefit less from market volatility.
Coinbase announced earlier this week that it is laying off around 14% of its staff, equivalent to some 700 jobs. The restructuring is part of a broader strategy to cut costs and operate more efficiently in a turbulent crypto market.
CEO Brian Armstrong said the company needs to adapt to ongoing market volatility and the rapid rise of AI. According to him, thanks to AI tools employees can now complete work in days that previously took weeks. Coinbase therefore wants to build smaller, faster teams and automate more processes.
The round of redundancies is expected to be completed in the second quarter of 2026 and will cost the company $50-$60 million, mainly for severance pay and staff arrangements. Affected employees will receive at least 16 weeks’ salary, additional compensation based on years of service, continued healthcare benefits and support with visa issues where necessary.
The company had already cut around 18% of its staff in 2022 and almost another 950 jobs in 2023, when the crypto market came under severe pressure following the collapse of FTX.
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