Étienne Girard
Coinbase shares experienced a sharp 15.3% drop on Thursday, marking the largest daily decline in over two years. This slide followed the release of third-quarter earnings, which fell short of market expectations, impacting the stock’s performance.
As the leading crypto exchange listed on the U.S. stock market, Coinbase’s shares closed at $179.25, trimming the year-to-date gain to a modest 3%. According to Market Watch, this is Coinbase’s steepest daily fall since July 2022, when the stock dropped 21%. In broader market movements, the Nasdaq Composite fell by 2.76%, and the S&P 500 by 1.86%.
The decline came on the heels of Coinbase’s Q3 financial report, which showed a net income of $75 million, significantly below the $112.2 million consensus expected by analysts surveyed by Bloomberg. Although the company’s net revenue, net income, and adjusted EBITDA improved year-over-year—reflecting last year’s lower crypto prices—certain metrics showed a sequential decrease. Net revenue, for instance, dropped from $1.38 billion in the prior quarter to $1.13 billion in the third quarter.
In an effort to boost shareholder confidence, Coinbase unveiled a new share buyback initiative. The board of directors has approved a $1 billion repurchase program, though the specific timing and amounts will depend on market conditions.
Learn: What is Cryptocurrency?
Coinbase also communicated optimism about the future despite potential impacts from the 2024 U.S. presidential election. The company noted that both major candidates and numerous politicians have recently taken more crypto-friendly stances, a notable shift from prior years.
Additionally, Coinbase has pledged an extra $25 million to the pro-crypto Fairshake political action committee (PAC) to support crypto-friendly candidates in the lead-up to the 2026 midterm elections.
