Coinbase misses revenue as users fall to 7.4 million and Armstrong lines up 8.17 million share sales
Coinbase missed analyst revenue expectations in the third quarter, reporting $1.20 billion against the $1.233 billion forecast, as monthly transacting users fell to 7.4 million from 9.3 million a year earlier. The exchange blamed overall market conditions on its earnings call, according to Token Times.
The picture was not uniformly weak. Subscription and services revenue reached $570 million, adjusted EBITDA came in at $332.9 million, extending a run of 15 consecutive profitable quarters on that measure, and Coinbase's share of crypto trading volume rose to 10.7%, the fourth straight quarter of gains. The prediction markets business passed $200 million in annualised revenue and Coinbase One hit a record number of subscribers.
Separately, filings dated October 30 show chief executive Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. He adopted the plan in August under SEC Rule 10b5-1, which lets executives schedule sales in advance; sales could run from November 16 through October 2027, subject to stock price conditions. Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the combined total to about 13.6 million shares. Armstrong has previously described such sales as risk management rather than a signal about the company, and VanEck analyst Matthew Sigel tracked about $545.7 million in earlier sales over nine months from April 2025.
Coinbase shares fell about 15% on the day, though the earnings report was not the only pressure. Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, which would make it the largest crypto theft on record; about $3 billion in assets has been frozen so far with help from industry partners. Binance has not attributed the attack to any group, and said it found no evidence of a leaked wallet private key. It reported $6.34 billion in reserves available to cover losses, said deposits were unaffected and expects withdrawals to resume within 48 hours. The figures remain preliminary.
Markets moved quickly. Bitcoin fell roughly 4.5% to below $77,000, Strategy shares dropped nearly 10% and Strive fell more than 12% at times. Coinbase stock is down over 55% on the year.
