Coinbase reports data theft cost $307 million as spot volumes and revenue dip in Q2

Coinbase’s highly-publicized data theft cost the firm $307 million, the company said in its second-quarter earnings report.

While Coinbase estimated the data breach might cost as much as $400 million, Thursday’s report provided a specific value to losses incurred from cyber criminals bribing some of the firm’s offshore customer service representatives in order to obtain user data and account management records. Coinbase reported the incident in May.

As expected, Coinbase’s spot trading volumes and revenue also declined during the fiscal period. Coinbase focused on comparing its results to the previous quarter, reporting that total revenue declined 26%, transaction revenue by 39% and crypto spot volumes were down by over 30% when compared to the first quarter.

But when compared to the previous year’s second quarter, the results were mixed, with Coinbase’s total revenue coming in relatively flat while net income jumped considerably. Coinbase earned a net income of $1.43 billion during the second quarter of this year, compared to $66 million last quarter and a mere $36 million in the year-ago period. Trading volumes came in at $237 million during the quarter, compared to $226 million during the same period in 2024.

‘Everything exchange’

While Coinbase appears poised to benefit from recent regulatory wins in the U.S., competition is heating up. To increase user activity and transaction revenue, Coinbase said Thursday it aims to position itself as an “everything exchange” where users can also trade “tokenized real-world assets, stocks, derivatives, prediction markets and early-stage token sales.”

Coinbase is generally speaking one of the more expensive crypto trading platforms in the U.S. Competitors such as Kraken and Robinhood are working to siphon off Coinbase customers and offer cheaper trading services for many retail traders.

Despite being the company’s main driver of revenue, some industry watchers don’t appear discouraged by Coinbase’s eroding trading volumes and transaction revenues. Last week, analysts at Bernstein raised their price target on the stock to $510, calling the company the “most misunderstood” firm among its portfolio of crypto coverage.

Bernstein is confident Coinbase’s diversified business lines will pay long-term dividends, citing the firm providing custody services for most Bitcoin exchange-traded fund issuers, and incubating Base, Ethereum’s fastest-growing Layer 2, which is a key hub for tokenization like JPMorgan Chase’s proposed JPMD coin.

Coinbase stock dropped over 3% to $363.80 per share in after-hours trading, according to TradingView data. The company’s shares are up more than 40% year to date.

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