Why is COIN stock down today? Coinbase earnings have investors spooked

Coinbase, the largest U.S.-based cryptocurrency exchange, reported second-quarter earnings on Thursday. Why is the stock tumbling? Here’s what to know.

What happened?

Shares of Coinbase Global (Nasdaq: COIN) were down 15% in morning and midday trading on Friday, the lowest price the stock has hit in more than a month, after it reported lower-than-expected second-quarter adjusted profit due to a slowdown in trading, according to Reuters.

Coinbase earnings

Revenue came in at $1.5 billion, which missed analyst expectations of $1.6 billion, while revenue tied to transactions came in at $764 million, missing StreetAccount estimates of $787 million, according to CNBC.

However, other earnings numbers came in strong.

In the three months ending June 30, Coinbase’s net income rose to $1.43 billion, delivering earnings per share (EPS) of $5.14. A further look at Coinbase’s EPS shows the company beat analyst expectations of $1.51 by $3.63.

Subscriptions and services offerings—which include stablecoins, staking, interest income, and custody—grew 9% from the same period a year ago, to $655.8 million, short of analysts’ projection of $705.9 million.

Analysts told Reuters that Coinbase could see trading volume improve, according to the company’s revenue estimates.

The earnings follow a surge in crypto spurred on by the GENIUS Act being signed into law on July 18.

Coinbase on S&P 500

Coinbase joined the S&P 500 stock market index in May, replacing Discover; it is the first time a crypto company has been included on the index. The S&P 500 is one of the world’s best-known stock market indexes.