Strategy (MSTR) Suffers $12.5 Billion Loss ...Coinbase (COIN) Wins Decisively

▲ Coinbase (COIN), Strategy (MSTR)/AI-generated image

The performance gap between Coinbase Global Inc. (COIN) and Strategy (MSTR) is once again shaking up investment standards for cryptocurrency-related stocks. An analysis suggests that Coinbase, which accumulates transaction fees and stablecoin revenue, has greater defensive strength than Strategy, which is focused on Bitcoin (BTC).

According to investment media outlet 24/7 Wall St. on July 3 (local time), Coinbase and Strategy announced their Q1 2026 earnings. Both companies were pressured by the cryptocurrency bear market. However, their business structures differed significantly.

Coinbase's Q1 revenue was $1.41 billion, a 30.54% decrease year-over-year. Its GAAP net loss was $394.1 million, burdened by a $482.4 million impairment loss on investment tokens. However, subscription and services revenue reached $583.5 million, accounting for 44% of net revenue. Stablecoin-related revenue alone was $305 million.

Strategy presented a different picture. Software revenue increased by 11.92% year-over-year to $124.3 million. However, an unrealized loss of $14.46 billion on Bitcoin holdings weighed down its performance. Preferred stock dividend obligations also amounted to $229.53 million, leading to a net loss of $12.54 billion.

24/7 Wall St. viewed Coinbase as an infrastructure company with exchange fees, USDC, and custody businesses. Strategy was assessed as a Bitcoin-focused investment company holding 818,334 BTC. Coinbase pursued approximately $500 million in cost savings through a 14% reduction in workforce. Strategy conducted an ATM (At-The-Market) equity offering worth $7.37 billion.

Stock price trends also showed a difference. Following the earnings announcement, Coinbase shares fell 17.48% to $159.24. Strategy plummeted 50.03% to $93.39, halving its value. Polymarket investors saw a 5.5% chance of Strategy facing a margin call in 2026. However, it was noted that a Bitcoin rebound or continuous ATM issuance would be necessary to cover the STRC dividend yield of 11.50%.

24/7 Wall St. evaluated Coinbase as a cleaner cryptocurrency infrastructure investment. Coinbase operates exchange, stablecoin, custody, prediction market, and derivatives businesses. Its adjusted EBITDA also recorded positive for 13 consecutive quarters. Strategy, on the other hand, could generate larger profits if Bitcoin rebounds strongly. However, the analysis suggests that dilution pressure could continue to increase if Bitcoin trades sideways.

[Article Key Summary]

-Coinbase recorded Q1 2026 revenue of $1.41 billion and subscription and services revenue of $583.5 million.

-Strategy's net loss expanded to $12.54 billion, impacted by an unrealized Bitcoin loss of $14.46 billion.

-24/7 Wall St. assessed that Coinbase's fee, stablecoin, and custody model has greater defensive strength than Strategy's leveraged Bitcoin strategy.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*