Coinbase Global Inc. shares slumped as much as 16% on Friday after the largest U.S. cryptocurrency exchange reported second-quarter results that fell short of market expectations on revenue and showed another drop in trading volumes. The sell-off erased part of a rally that had more than doubled the stock since early April, when investors began betting that the company would benefit from resurgent digital-asset prices despite the new 145% U.S. tariffs on Chinese goods. Headline figures were overshadowed by several large one-time items. Coinbase booked a $1.5 billion pre-tax gain on its minority stake in Circle Internet Financial following the stable-coin issuer’s June listing. It also recognized a $362 million unrealized gain on its broader crypto investment portfolio, buoyed by rising token prices. Offsetting those gains was a $307 million charge linked to a May data breach in which customer information was stolen, an incident that has already drawn class-action lawsuits and regulatory scrutiny. While brokerage Bernstein called the period “the quarter that doesn’t matter,” analysts at Mizuho warned that the numbers point to shrinking margins on USD Coin (USDC), a key profit source shared with Circle. The mixed signals left investors questioning whether the company can maintain profitability once extraordinary items fade and market volumes remain subdued. Selling pressure spread across the crypto-equity complex, with Riot Platforms falling roughly 16% and MicroStrategy sliding about 7%. Options activity implied traders were bracing for an outsized move, mirroring recent post-earnings volatility in other large-cap technology stocks.