By Vicky Ge Huang

Coinbase Global, the largest U.S. crypto exchange, swung to a loss in a fourth quarter marked by sharp selloff in digital currencies.

Coinbase reported Thursday afternoon a net loss of $667 million, or $2.49 a share, in the fourth quarter, compared with net income of $1.3 billion, or $4.68 a share, in the year-earlier period. Quarterly net revenue fell 22% to $1.7 billion.

The exchange's results were pulled into the red by its holdings in bitcoin, ether and other digital-asset investments. Bitcoin, the largest cryptocurrency, rose above $126,000 to a record high in early October before beginning its monthslong slide. Since touching new highs, the broader market for digital assets has lost nearly $2 trillion in market value.

Shares of crypto exchanges such as Coinbase -- as well as investment firms and brokerages that offer access to digital assets -- have also tumbled during what some fear may represent the start of the next crypto winter, a cyclical downturn that has tended to arrive every four or so years.

Coinbase rose less than 1% in late trading after the market's close. The stock has plummeted 63% since bitcoin reached a peak above $126,000 in October. The largest cryptocurrency has plunged 48% since then and was trading at around $65,660 as of 4 p.m. ET Thursday.

For the full year, the company earned $1.26 billion, down 51% from 2024, on net revenue of $6.89 billion. Coinbase's annual growth underlined an eventful 2025 that saw crypto rise sharply on investors' enthusiasm for President Trump's return to the White House and his campaign promise to make the U.S. the world's capital for crypto -- and mainstream Wall Street's gradual acceptance of digital assets as a legitimate market.

Now, with token prices sliding, the digital-assets industry is once again confronting the prospect of an extended period characterized by waning investor interest, declining institutional investment and workforce reductions.

For Coinbase, the company's fortune remains largely dependent on the transaction fees it earns from investors, which have historically slumped during market downturns. In the fourth quarter, the company recorded total transaction revenue of $983 million, down 37% from $1.56 billion from a year ago.

Write to Vicky Ge Huang at vicky.huang@wsj.com

(END) Dow Jones Newswires

February 12, 2026 16:31 ET (21:31 GMT)

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