Coinbase Stock Decline

Coinbase shares dropped 15.3% on Thursday, marking the stock’s largest fall in over two years after the company reported weaker-than-expected earnings for the third quarter.

The U.S.'s largest publicly traded crypto exchange saw its stock price slide to $179.25 at Thursday's close, reducing its year-to-date gain to 3%. This represents the stock’s biggest daily decline since July 2022, which saw a 21% drop, according to Market Watch data. The Nasdaq Composite closed down 2.76%, and the S&P 500 lost 1.86%.

Earnings Report

Coinbase’s stock fell after the company released its third-quarter results, which were below analysts' expectations. Its net income was $75 million, missing the expected target of $112.2 million as surveyed by Bloomberg.

Although the company’s net revenue, net income, and adjusted EBITDA were up year-on-year due to lower crypto prices last year, some key earnings figures declined compared to the previous quarter. For instance, net revenue was $1.13 billion in the third quarter, down from $1.38 billion in the last quarter.

Share Buyback Program

Coinbase also announced a share buyback program alongside its latest earnings results, demonstrating confidence in the company’s operations. The board of directors has authorized a $1 billion share repurchase program, with the timing and amount of any repurchases dependent on market conditions.

The crypto exchange expressed optimism about the future, despite the upcoming U.S. presidential election results. They noted a favorable shift towards crypto among politicians across the political spectrum compared to previous years.

Additionally, the company pledged an extra $25 million donation to the super political action committee Fairshake to support pro-crypto candidates ahead of the 2026 midterm elections.