For customers, the bigger questions aren’t about Coinbase’s survival. They’re about who holds your coins, how you’d get them out and what happens if something goes wrong.
How much money is Coinbase losing?
All figures from Coinbase’s Q2 2026 earnings deck, as of June 30, 2026 (the latest reported quarter as of October 19, 2026).
Revenue: $1.22 billion, down 19% from Q2 2025
Net income: −$359.5 million, a second straight loss (Q1: −$394.1 million)
Trading (transaction) revenue: $599 million. It falls when Bitcoin and altcoin prices and trading fall.
Subscription and services revenue: $555 million, 48% of revenue, with $292 million of it from stablecoins (USDC)
Adjusted EBITDA: $207.8 million, still positive
Customer assets on the platform: $246 billion, down from $294 billion the previous quarter
Employees: 4,321, after a 14% cut in May 2026
Much of the loss is on paper. Coinbase holds Bitcoin and other coins as an investment, and when prices fall it must report the drop: $209.5 million of the Q2 loss came from this. There was also a $52.4 million restructuring charge for the layoffs.
Where the Q2 2026 loss came from
Our breakdown, using the figures in Coinbase’s Q2 2026 earnings deck:
About 58% of the $359.5 million Q2 loss ($209.5 million) came from write-downs on the coins Coinbase holds as an investment.
About 15% ($52.4 million) was the restructuring charge for the May 2026 layoffs.
First-half 2026 net loss: about $753.6 million ($394.1 million in Q1 plus $359.5 million in Q2).
Customer assets fell about 16% in one quarter, from $294 billion to $246 billion.
What to watch on October 29
Did the losses continue? Q3 covers July to September 2026.
Subscription and services revenue. Coinbase guided $500 million to $580 million for Q3 (guidance given with Q2 results). This is the steadier part of the business.
Customer assets and trading volume. These show whether customers are staying active.
Regulation stalled. The CLARITY Act, a market-structure bill Coinbase lobbied hard for, failed a Senate procedural vote 49–50 on September 15, 2026. Sen. Thom Tillis then moved to reconsider the vote, which keeps it technically alive, but no new vote has been scheduled and supporters call a revival before the new Congress a long shot (as of September 17, 2026). If it doesn’t pass by January 2027, it would generally have to be reintroduced in the next Congress (as of September 22, 2026).
The key events behind the numbers, in order (sources are linked in the sections above):
February 2025: The SEC dismisses its 2023 lawsuit with prejudice.
May 2025: Coinbase discloses an insider data breach affecting 69,461 customers and joins the S&P 500.
June 2025: Coinbase receives an EU license under MiCA.
August 2025: Coinbase completes its roughly $2.9 billion purchase of Deribit.
October 2025: Bitcoin hits a record of about $126,000 on October 6, and COIN peaks at $387.27 on October 8.
December 2025: No-fee stock trading and Kalshi prediction markets launch.
February 2026: Bitcoin falls to $63,000 on February 5.
April 2026: The OCC conditionally approves a national trust charter.
May 2026: Coinbase lays off about 14% of staff on May 5.
July 2026: A ruling says support contractor TaskUs must face negligence claims over the breach.
August 2026: The USDC revenue deal with Circle renews through 2029.
September 2026: The CLARITY Act fails a Senate procedural vote, 49–50, on September 15.
October 2026: COIN closes at $173.16 on October 16, a report says Taiwan blocked Coinbase’s website, and Q3 results are due October 29.
What lawsuits and security problems does Coinbase face?
The May 2025 data breach. Criminals bribed overseas customer-support contractors to steal data on 69,461 customers. They got names, addresses, phone numbers, ID images, the last four digits of Social Security numbers and account balances, but no passwords or private keys. Coinbase refused a $20 million ransom demand and estimated the cost at $180 million to $400 million. The lawsuits were combined into one federal case in New York before Judge Edgardo Ramos. In July 2026, a ruling said the support contractor, TaskUs, must face negligence claims. No settlement has been reported as of October 19, 2026.
Impersonation scams. Blockchain investigator ZachXBT estimated in early 2025 that Coinbase users lose more than $300 million a year to scammers posing as Coinbase support. The leaked breach data made these scams easier.
Oregon’s lawsuit. Oregon’s attorney general sued in 2025, claiming Coinbase sold unregistered securities. Coinbase moved the case to federal court, and in September 2025 a federal magistrate judge recommended sending it back to state court. No ruling on that recommendation has been reported, and the federal case is stayed until March 16, 2027 (as of October 26, 2026).
Taiwan. On October 15, 2026, a news report citing Bloomberg said Taiwan blocked the Coinbase and Kalshi websites over suspected election betting, under a court ruling. Taiwan’s Criminal Investigation Bureau requested the block, and the New Taipei District Court approved it ahead of Taiwan’s November 28, 2026 local elections (Bitcoin.com News, October 16, 2026). Coinbase said it was investigating the access issues. No end date has been reported.
Your Bitcoin is not FDIC or SIPC insured. Coinbase’s crime insurance covers a portion of the coins across its storage systems against theft. It does not cover your losses if someone gets into your account (as of October 19, 2026).
Your coins should stay yours in a bankruptcy. In 2022 Coinbase warned that customers could be treated as unsecured creditors if it went bankrupt. Its current user agreement (updated July 22, 2026) says Bitcoin and other coins in your Coinbase account are treated as a “financial asset” under Division 8 of the California Uniform Commercial Code. That rule is meant to keep it separate from Coinbase’s own assets. It’s much better than 2022, but it hasn’t been tested in a Coinbase bankruptcy.
Coinbase holds most ETF Bitcoin. CEO Brian Armstrong said in February 2026 that Coinbase has “80% plus” of US Bitcoin ETF custody. The company says it will not publish wallet addresses it holds for clients. That’s a lot of Bitcoin with one custodian.
For a fuller look at Coinbase’s security record and custody, read our guide to whether Coinbase is safe.
Swan’s take
Swan is Bitcoin-only, so we look at this differently from a multi-coin exchange. Coinbase is a large, regulated public company and isn’t about to disappear. Its struggles still show the trade-off of leaving savings on any exchange: you depend on its finances, its security and its support staff. The surest protection is to hold your own keys.
Hold your IRA with the most trusted name in Bitcoin.
Frequently Asked Questions
Is Coinbase going bankrupt?
No public evidence says so. Coinbase posted net losses in Q1 and Q2 2026 but stayed positive on adjusted EBITDA ($207.8 million in Q2 2026, per its Q2 earnings deck).
When does Coinbase report Q3 2026 earnings?
Thursday, October 29, 2026, after the US market closes, with a live Q&A at 2:00 p.m. PT (announced October 14, 2026).
Why did Coinbase lay off employees in 2026?
It cut about 14% of staff on May 5, 2026. CEO Brian Armstrong cited the down market and how AI has changed the way Coinbase works.
Is my Bitcoin safe if Coinbase fails?
Coinbase’s user agreement (updated July 22, 2026) treats Bitcoin and other coins in your Coinbase account as financial assets held for you, separate from Coinbase’s own assets. This hasn’t been tested in a Coinbase bankruptcy. Coins held at Coinbase are not FDIC or SIPC insured.
Why is Coinbase stock down?
Lower Bitcoin and altcoin prices and trading cut revenue and caused paper losses on Coinbase’s own coin holdings. COIN closed at $173.16 on October 16, 2026, about 55% below its October 8, 2025 peak of $387.27.
How much did Coinbase lose in 2026?
About $753.6 million in the first half of 2026: $394.1 million in Q1 and $359.5 million in Q2. About 58% of the Q2 loss came from write-downs on the coins it holds.
Did the SEC drop its case against Coinbase?
Yes. It was dismissed with prejudice in February 2025.
How do I get my Bitcoin off Coinbase?
Set up a wallet you control, send a small test amount from Coinbase with Send, then send the rest once it arrives.
Matt Ruby is a seasoned content writer helping educate million worldwide about Bitcoin for Swan. Matt work with tech companies to create words, videos, and other content that makes them seem human. He specializes in taking boring/drab tech topics and making them interesting, educational, funny, and accessible to regular people.
Drew
Drew, a class of 2013 Bitcoiner, is a Research Analyst for Swan Bitcoin.
He has worked in institutional VC/PE, FinTech, and DLT consulting for over six years. He also brings over twelve years of experience working with national nonprofits and start-ups in education and software development in several leadership roles.
How Swan built an agentic software factory that finds production bugs, reaches consensus on the fix, opens the PR, and proves it works before a human merges.
Total federal debt crossed $40 trillion last week. Jeremy Showalter maps how we got here, where four institutional projections take it by 2050, and why the honest total is already about $55 trillion.
