- Retail users increased Bitcoin and Ethereum holdings despite Coinbase posting a $666 million quarterly loss.
- Brian Armstrong said retail dip buying kept wallet balances higher in February than in December.
- Coinbase reported over $237 billion in institutional trading volume during market volatility.
Brian Armstrong, co-founder and Chief Executive Officer of Coinbase, said retail users increased crypto holdings during the recent downturn. He explained that many customers bought Bitcoin and Ethereum as prices declined. Others maintained their positions and avoided panic selling. As a result, retail wallet balances in February were higher than in December.
Most of the buying activity centered on Bitcoin and Ethereum. These assets generate the highest trading volume on Coinbase. The figures reflect internal exchange data rather than total blockchain activity. Even so, the pattern shows that active users stayed engaged despite market stress.
Armstrong indicated that many long-term holders remained confident during volatility. Retail traders treated the pullback from 2025 highs as a buying opportunity. Consequently, user balances strengthened while prices weakened. This trend provided a measure of stability during a difficult quarter.
Quarterly Loss Driven by Accounting Charges
Coinbase reported a $666 million net loss for the fourth quarter. The loss largely stemmed from unrealized impairment charges tied to the company’s crypto holdings. These charges reflected lower asset valuations, not direct cash losses. However, the headline figure weighed on market sentiment.
During the same period, Coinbase shares fell sharply and reached a two-year low. Broader crypto volatility contributed to investor caution. Still, internal platform data showed steady user participation. Retail accumulation contrasted with the company’s reported loss.
Chief Financial Officer Alesia Haas noted heightened volatility and reduced institutional risk appetite early this year. Some institutional capital rotated out of the market. Nevertheless, Coinbase recorded more than $237 billion in institutional trading volume last quarter. This activity shows that large clients continued using the exchange’s infrastructure.
Diversification Strategy and Insider Sales
Coinbase has expanded beyond spot trading to stabilize revenue. The company now emphasizes subscription and services income, including custody, staking, decentralized finance tools, and prediction markets. It projected between $550 million and $630 million in subscription and services revenue for the first quarter. Therefore, management aims to reduce reliance on trading tied directly to crypto price swings.
Armstrong also sold more than $550 million in Coinbase shares over the past year. The sales included a $101 million block in January 2026. He executed the transactions under a pre-arranged Rule 10b5-1 trading plan. Although the timing drew scrutiny, Coinbase’s institutional and retail activity remained active during the quarter.