Coinbase Stock Crashes 15% in Biggest Drop Since 2022 As Q3 Earnings Disappoint

Coinbase shares fell by 15.3% on Thursday, marking the most significant drop over two years. The decline happened after Coinbase announced its earnings for the third quarter.

Unfortunately, the earnings were weaker than analysts had expected. Therefore, many investors were disappointed by this news, leading to a significant drop in share prices.

Coinbase Faces Major Decline as Third-Quarter Results Fall Short

The largest publicly traded crypto exchange in the U.S. saw its stock price drop to $179.25 by the end of Thursday. According to Market Watch data, this decline reduced its gain for the year to just 3%, marking its most significant drop since July 2022, when the stock fell by 21%.

Aside from Coinbase stocks, the broader market was gloomy. The Nasdaq Composite closed down by 2.76%, while the S&P 500 lost 1.86% at the close.

Coinbase’s stock dropped the day after the company shared its third-quarter results. Unfortunately, these results were not as good as analysts had hoped. Coinbase reported a net income of $75 million for the third quarter, lower than the expected target of $112.2 million by Bloomberg analysts.

This news disappointed many investors, leading to a sharp decline in stock prices.

The company saw positive net revenue and net income growth and adjusted EBITDA compared to last year when crypto prices were lower. However, when looking at the numbers compared to the previous quarter, some key earnings figures went down.

For instance, Coinbase reported a net revenue of $1.13 billion in the third quarter. This was a drop from $1.38 billion in the last quarter.

Coinbase Boosts Confidence with $1 Billion Share Buyback and Political Donations

Coinbase recently announced a share buyback program when it released its latest earnings result. This move shows that the company has Confidence in its operations.

A share buyback program means Coinbase plans to buy back its shares from the market. The board of directors at Coinbase has approved a program worth $1 billion for this buyback. This amount is significant and reflects the company’s belief in its future.

The company said the timing and amount of share repurchases will depend on market conditions. This indicates that the company will carefully watch the market before deciding when and how much to buy back.

In its letter to shareholders, Coinbase shared that its leadership is optimistic about the future. It believes the company will be fine no matter what happens in the upcoming U.S. presidential election. This is an important message for investors and stakeholders.

The company noted a positive change in how politicians view cryptocurrency. It said presidential candidates and politicians from different parties had taken more favorable positions on crypto. 

This is a significant shift from previous years when many politicians were more cautious or pessimistic about digital currencies.

Coinbase announced a new donation. The company has pledged an additional $25 million to a super political action committee called Fairshake. This donation aims to support pro-crypto candidates.

The timing of this donation is important because it comes ahead of the 2026 midterm elections. By doing this, the company has shown its commitment to influencing politics, favoring the crypto industry.