Coinbase, Circle, and Robinhood shares are under pressure as weak trading revenue and interest rate sensitivity highlight the difficulty of diversifying beyond volatile crypto markets.
Reserve income fell 8% year-on-year to $658 million on lower rates, USDC supply was little changed at $73.9 billion, and a 5% workforce cut was announced Wednesday. Excluding $182 million of Arc token presales, revenue would have fallen about 8%. The stock already dropped 11% over the past 5 days, leading the sector.
Reserve income, its main earnings driver, fell 8% year-on-year to $658 million because lower interest rates reduced returns on the reserves backing USDC, and without $182 million of one-off Arc token presales, total revenue would have declined about 8%.
Circle fell 11% over the past 5 days, leading the decline among crypto-related stocks alongside weaker Coinbase and Robinhood results.
Third-quarter transaction revenue fell 23% year-on-year to $590 million and consumer spot trading volume dropped 9% from the previous quarter. Barclays cut its price target to $120 from $149 on a weak fourth-quarter outlook, and shares are already down over the past 5 days. Cost-driven EBITDA growth and a $207 target from Oppenheimer argue against a deeper slide.
Its crypto trading revenue fell 23% year-on-year to $590 million in the third quarter, and analysts flagged a weak fourth-quarter outlook, though cost cuts helped adjusted EBITDA rise 60% from the previous quarter.
Yes — prediction markets and derivatives now generate about a quarter of transaction revenue, daily prediction market users rose more than 60% in a quarter, and stablecoin revenue from record $22 billion average USDC balances grew 16% from the previous quarter.
Robinhood reported weaker crypto trading revenue last week, and its shares are down significantly over the past 5 days alongside the crypto price slide after Tuesday's midterm elections. Its diversification into retirement accounts and banking hasn't made crypto trading less cyclical.
It reported weaker crypto trading revenue last week, and its shares fell significantly over the past 5 days as crypto prices slid after Tuesday's midterm elections.
Crypto prices are sliding following Tuesday's midterm elections, and the industry is already dealing with a slowdown in trading. Bitcoin was quoted at $75,719.72. Weak results from Coinbase, Robinhood and Circle reinforce the cyclical trough narrative, though these are company earnings rather than a direct bitcoin driver.
The article cites bitcoin at $75,719.72 and notes crypto prices are sliding following Tuesday's midterm elections amid a broader trading slowdown.
Major crypto-linked firms face a cyclical downturn as trading revenue declines across the sector. Despite diversification into prediction markets, stablecoins, and banking, Coinbase, Circle, and Robinhood are struggling to decouple their earnings from volatile crypto market volumes. Shares have dropped significantly over the past five days as investors weigh weak quarterly results against the industry's ongoing efforts to build more durable, non-trading revenue streams.
Companies like Coinbase, Circle, and Robinhood reported weaker-than-expected trading revenue, and the broader crypto market has faced downward pressure following the U.S. midterm elections.
While firms are expanding into prediction markets, banking, and stablecoins, these new revenue streams have not yet made their earnings immune to the cyclical volatility of the crypto market.