Coinbase has announced a $667 million net loss for Q4 2025, marking its first quarterly loss since 2023. The loss was primarily due to $718 million in unrealized markdowns on its crypto investment portfolio and a $395 million loss on strategic investments, including a significant decline in its stake in Circle. This downturn contrasts with the previous year's $1.3 billion profit. Despite record operational metrics, including a 156% increase in trading volume to $5.2 trillion and a doubling of market share to 6.4%, Coinbase's total revenue fell 21.6% year-over-year to $1.78 billion, missing analyst expectations. Transaction revenue also dropped 36% to $983 million. The company ended the year with $11.3 billion in cash and cash equivalents. Coinbase faces rising competition, notably from decentralized derivatives platform Hyperliquid, which processed $2.6 trillion in trading volume compared to Coinbase's $1.4 trillion. Despite challenges, Coinbase is expanding its offerings beyond spot trading, aiming to build an "Everything Exchange" that includes derivatives and equities.