Coinbase Q1 earnings report falls short of expectations, Wall Street receives mixed reviews after completing $2.9 billion acquisition of Deribit

Coinbase released its Q1 2025 financial report, with revenue declining 12% quarter-on-quarter to $2.03 billion, below market expectations. Trading revenue dropped nearly 19% year-on-year to $1.3 billion. Weak trading volume in April put pressure on second-quarter prospects, leading analysts from Morgan Stanley and KBW to lower their annual revenue forecasts. However, Coinbase's acquisition of Deribit, the world's largest crypto derivatives exchange, for $2.9 billion has attracted market attention. Analysts from Bernstein and Canaccord gave positive evaluations, believing this move will enhance Coinbase's strategic position in the derivatives sector and support its global layout. Additionally, revenue from stablecoin business and custody and trading technology services grew 9% to $698 million, becoming a key growth pillar to hedge market volatility. USDC balance surged to $12.3 billion, with the "Coinbase as a Service" model also seen as a potential long-term growth engine. (CoinDesk)