Published: February 13, 2026 | Last Updated: February 13, 2026
Coinbase Q4 $667M Loss: What It Means for Your Crypto Taxes and 1099-DA
On February 12, 2026, Coinbase (COIN) reported a $667 million net loss for Q4 2025 — ending an 8-quarter profit streak. Revenue dropped 22% year-over-year to $1.78 billion. Trading revenue crashed 37% YoY to $983 million. COIN stock closed at $141, down 68% from its all-time high of $444.
But here's what most investors are missing: this earnings report has direct tax implications for every Coinbase user filing in 2026. Your 1099-DA is arriving (deadline: Feb 17), cost basis rules just changed, and the numbers on that form may be dangerously incomplete.
Coinbase must deliver your Form 1099-DA by Feb 17, 2026. For 2025 transactions, this form reports only gross proceeds — NOT cost basis. If you file using only 1099-DA data, the IRS will treat your entire sale amount as 100% profit. IRS Source →
⚡ Quick Facts — Coinbase Q4 2025
- Q4 Net Loss: $667M (vs $1.29B profit in Q4 2024)
- Q4 Revenue: $1.78B (‑22% YoY, ‑5% QoQ)
- Q4 Trading Revenue: $983M (‑37% YoY)
- COIN Stock: $141.09 close (‑68% from $444 ATH)
- Cash Reserves: $11.3B
- Share Buyback: $1.7B (Q4 + Feb 2026)
- Coinbase One Subscribers: ~1 million
- 1099-DA: First year issued; gross proceeds only for 2025
- Cost Basis Reporting: Mandatory starting Jan 1, 2026 transactions
π Table of Contents
- Coinbase Q4 by the Numbers
- Why the $667M Loss Isn't What You Think
- Your 1099-DA: What Coinbase Reports vs. What It Doesn't
- The Missing Cost Basis Trap (With Dollar Examples)
- Per-Wallet Rules: How Coinbase Handles the New IRS Mandate
- COIN Stock Down 68% — Tax-Loss Harvesting Opportunity
- 5-Step Action Plan Before April 15
- FAQ: 15 Questions
1. Coinbase Q4 by the Numbers
| Metric | Q4 2025 | Change |
|---|---|---|
| Total Revenue | $1.78B | ‑22% YoY |
| Transaction Revenue | $983M | ‑37% YoY |
| Consumer Transaction Revenue | $734M | ‑13% QoQ |
| Institutional Transaction Revenue | $185M | +37% QoQ |
| Subscription & Services | $727M | ‑3% QoQ |
| Stablecoin Revenue | $364M | +3% QoQ |
| Net Income (Loss) | ($667M) | vs +$1.29B Q4'24 |
| Adjusted EBITDA | $566M | ‑56% YoY |
| Adjusted Net Income | $178M | Operationally profitable |
| COIN Stock Close | $141.09 | ‑68% from ATH ($444) |
| After-Hours | $142.31 | ‑7.9% on day |
| Cash & Equivalents | $11.3B | ‑$0.7B QoQ |
| Share Buyback (Q4 + Feb '26) | $1.7B | 8.2M shares total |
| Full Year Revenue | $7.2B | +9% YoY |
| Full Year Trading Volume | $5.2T | +156% YoY |
| Coinbase One Subscribers | ~1M | 3x in 3 years |
| Employees | 4,951 | +31% YoY |
Source: Coinbase Shareholder Letter, Feb 12, 2026
π Related Guide
Understand the new per-wallet cost basis rule that impacts every Coinbase user
Per-Wallet Cost Basis Migration Guide →2. Why the $667M Loss Isn't What You Think
The headline is alarming — but the breakdown tells a completely different story:
| Component | Amount | Type |
|---|---|---|
| Crypto asset portfolio loss | $718M | Largely UNREALIZED |
| Strategic investment loss (incl. CRCL) | $395M | Paper loss |
| Adjusted Net Income (operations) | +$178M | Profitable |
| Adjusted EBITDA | +$566M | Cash-generating |
Translation: Coinbase's core business still made money. The $667M loss was driven almost entirely by unrealized drops in their own crypto holdings (mainly BTC and ETH) — not by operational failure. They hold $11.3B in cash, repurchased $1.7B of their own stock, and still generated positive Adjusted EBITDA.
π Turn Losses Into Savings
BTC is down 48% from ATH. Learn how to harvest those losses legally.
Tax-Loss Harvesting Mega Guide →3. Your 1099-DA: What Coinbase Reports vs. What It Doesn't
This is the first year Coinbase is required to issue Form 1099-DA. Here's what's on it — and what's critically missing:
| Field | 2025 Transactions (This Filing) | 2026+ Transactions (Next Year) |
|---|---|---|
| Date of sale | ✅ Reported | ✅ Reported |
| Gross proceeds | ✅ Reported | ✅ Reported |
| Cost basis | ❌ NOT reported | ✅ Covered assets only |
| Gain/loss calculation | ❌ NOT reported | ❌ Partial |
| Transferred-in assets basis | ❌ Shows $0 | ❌ Still shows $0 |
| DeFi / DEX transactions | ❌ Not included | ❌ Not included |
| Crypto-to-crypto trades | ✅ Reported | ✅ Reported |
What Coinbase Cannot Track
Even when cost basis reporting becomes mandatory for 2026 transactions, Coinbase still cannot report basis for:
→ Crypto transferred IN from another exchange (MetaMask, Kraken, Ledger, etc.)
→ Crypto purchased before your Coinbase account was created
→ Crypto acquired through mining, airdrops, staking rewards, or hard forks
→ Crypto received as payment or gifts
→ Any DeFi/DEX activity (Uniswap, Aave, etc.)
For all of these, you are responsible for calculating and reporting cost basis on Form 8949. Coinbase's 1099-DA will show these as $0 basis — which means 100% taxable if you don't correct it.
Sources: Coinbase Help — 1099-DA · IRS — Understanding Form 1099-DA · Awaken Tax — Coinbase 1099-DA Limitations
4. The Missing Cost Basis Trap (With Dollar Examples)
Let's say you sold 1 BTC on Coinbase in 2025 for $66,000. Here's what happens depending on how cost basis is reported:
| Scenario | Cost Basis | Taxable Result | Tax @ 24% |
|---|---|---|---|
| 1099-DA only (no basis reported) | $0 | +$66,000 gain | $15,840 |
| FIFO default (bought at $35K in 2021) | $35,000 | +$31,000 gain | $7,440 |
| Average cost (if it were allowed) | $66,000 | $0 | $0 |
| Specific ID (bought at $97K in 2024) | $97,000 | ‑$31,000 loss | $0 (+ deduction) |
$15,840 vs. $0
Same 1 BTC sale. Same Coinbase account. The only difference: whether you report cost basis correctly.
5. Per-Wallet Rules: How Coinbase Handles the New IRS Mandate
Starting January 1, 2025, the IRS banned the universal wallet method under Revenue Procedure 2024-28. This means:
→ Each wallet and exchange is treated as a separate tax account
→ Cost basis cannot be pooled across platforms
→ FIFO is the default if you don't elect Specific Identification
→ Coinbase can only track basis for crypto bought and sold within Coinbase
What This Means for Coinbase Users Specifically
| Situation | Coinbase Can Track Basis? | Your Action Required |
|---|---|---|
| Bought BTC on Coinbase → Sold on Coinbase | ✅ Yes | Verify accuracy, choose Spec ID if beneficial |
| Bought BTC on Kraken → Transferred to Coinbase → Sold | ❌ No — shows $0 basis | Manually calculate basis from Kraken records |
| Received BTC from mining → Sent to Coinbase → Sold | ❌ No | Use FMV at time of mining as basis |
| Bought BTC on Coinbase → Transferred to Ledger → Sold on Kraken | ❌ Not Coinbase's problem | Track basis from original Coinbase purchase |
| Staking rewards earned on Coinbase → Sold | ✅ Partial | Verify FMV at time rewards were received |
| Airdrop received in Coinbase wallet → Sold | ❌ Likely missing | Record FMV at time of airdrop |
π Complete Per-Wallet Migration Guide
Step-by-step instructions, software comparison, and 20 FAQs
Per-Wallet Cost Basis Guide →6. COIN Stock Down 68% — Tax-Loss Harvesting Opportunity
This section is for investors who hold COIN stock (not just crypto on Coinbase). With COIN trading at $141 — down 68% from its $444 all-time high — there's a significant tax-loss harvesting opportunity.
| Purchase Price | Current Price | Loss per Share | 100 Shares Loss |
|---|---|---|---|
| $444 (ATH) | $141 | ‑$303 | ‑$30,300 |
| $350 | $141 | ‑$209 | ‑$20,900 |
| $250 | $141 | ‑$109 | ‑$10,900 |
| $200 | $141 | ‑$59 | ‑$5,900 |
Unlike crypto, COIN is a publicly traded stock. The wash sale rule applies. If you sell COIN at a loss, you cannot repurchase it within 30 days before or after the sale — or the loss is disallowed. This is the opposite of crypto, where the wash sale rule does not currently apply.
Strategy: COIN Losses Can Offset Crypto Gains
Here's where it gets powerful: Capital losses from COIN stock can offset capital gains from crypto sales. If you have $20,000 in crypto gains and $20,000 in COIN stock losses, they cancel out — $0 tax. Any excess loss up to $3,000 offsets ordinary income. Remaining losses carry forward to future years.
π Crypto Tax-Loss Harvesting Guide
BTC down 48% from ATH — learn the complete strategy
Tax-Loss Harvesting Mega Guide →7. 5-Step Action Plan Before April 15
Step 1: Receive and Review Your 1099-DA (By Feb 17)
Check your Coinbase account → Tax Documents section. Download the 1099-DA when available. Review every transaction listed. Flag any that show $0 cost basis — these need manual correction.
Step 2: Export Your Full Transaction History
Go to Coinbase → Settings → Taxes → Download Reports. Export your complete transaction history CSV. This includes transfers, staking rewards, and trades that may not appear on the 1099-DA.
Step 3: Import into Crypto Tax Software
Use a dedicated crypto tax tool to calculate your actual cost basis per wallet:
| Software | Per-Wallet Tracking | Spec ID / HIFO | Starting Price |
|---|---|---|---|
| CoinTracker | ✅ | ✅ | $59/yr (100 txns) |
| Koinly | ✅ | ✅ | $49/yr (100 txns) |
| CoinLedger | ✅ | ✅ | $49/yr |
| TaxBit | ✅ | ✅ | Free (basic) |
| Awaken Tax | ✅ | ✅ | $50/yr |
Step 4: Reconcile 1099-DA with Your Records
Compare the 1099-DA gross proceeds against your tax software's output. If numbers don't match, use Form 8949 Column (e) to explain the difference. Common reasons for mismatch: transferred-in crypto ($0 basis on 1099-DA), missing staking rewards, fee calculations.
Step 5: File Form 8949 + Schedule D
Report all crypto disposals on Form 8949. Use Column (f) Code B for short-term and Code E for long-term if cost basis was NOT reported on the 1099-DA. Transfer totals to Schedule D. If you have COIN stock losses, report those on a separate 8949 from your broker's 1099-B.
8. FAQ: 15 Critical Questions About Coinbase Q4 and Your Taxes
Q1: Did Coinbase actually lose $667 million?
Yes, on a GAAP (Generally Accepted Accounting Principles) basis. However, $718M came from unrealized crypto portfolio losses and $395M from strategic investment declines. On an adjusted basis, the core business generated $178M in net income and $566M in EBITDA.
Q2: Is Coinbase in financial trouble?
No. Coinbase holds $11.3 billion in cash and cash equivalents, repurchased $1.7 billion of its own stock, and has $2.3 billion remaining in buyback authorization. The company guided Q1 2026 transaction revenue of approximately $420M through Feb 10.
Q3: When will I receive my Coinbase 1099-DA?
The IRS deadline for brokers to deliver 1099-DA to taxpayers is February 17, 2026. Check your Coinbase account under Settings → Tax Documents. It may also arrive by mail or email.
Q4: Does the Coinbase 1099-DA include cost basis?
Not for 2025 transactions. The 1099-DA only reports gross proceeds this year. Cost basis reporting becomes mandatory for "covered" digital assets starting with transactions on or after January 1, 2026. IRS Source →
Q5: What happens if I just file using the 1099-DA numbers?
The IRS will treat your sale proceeds as 100% gain because no cost basis is shown. For example, selling 1 BTC at $66,000 would appear as a $66,000 taxable gain with a $15,840 tax bill at 24%. You must report your own cost basis on Form 8949.
Q6: What about crypto I transferred into Coinbase from another wallet?
Coinbase cannot track cost basis for transferred-in crypto. The 1099-DA will show $0 basis for these assets. You must use records from the original purchase platform to determine and report the correct cost basis.
Q7: Can I use HIFO (Highest In, First Out) on Coinbase?
Coinbase's default reporting may use FIFO, but you can elect Specific Identification (which includes HIFO) on your tax return. The key is proper documentation showing which specific lots you sold. Crypto tax software like CoinTracker and Koinly automate this.
Q8: I hold COIN stock at a loss. Can I harvest the loss?
Yes, but the wash sale rule applies to stocks. If you sell COIN at a loss, you cannot repurchase COIN (or a "substantially identical" security) within 30 days before or after the sale. COIN losses can offset crypto gains and up to $3,000 of ordinary income.
Q9: Does the wash sale rule apply to my crypto on Coinbase?
As of this writing (February 2026), the wash sale rule does not apply to cryptocurrency. You can sell BTC at a loss and buy it back immediately. However, Congress has proposed extending the rule to crypto — this could change in a future tax year.
Q10: What is the per-wallet cost basis rule?
Starting January 1, 2025, under Revenue Procedure 2024-28, you can no longer pool cost basis across all your wallets. Each exchange or wallet is treated as a separate tax account with its own cost basis tracking. IRS Rev. Proc. 2024-28 →
Q11: My 1099-DA shows transactions I don't recognize. What do I do?
This could be from automated conversions, staking rewards, or referral bonuses. Log into Coinbase and review your full transaction history. If you believe transactions are incorrect, contact Coinbase support and document everything before filing.
Q12: Does Coinbase report to the IRS even if I don't get a 1099-DA?
Yes. Coinbase files the 1099-DA with the IRS regardless of whether you receive your copy. You are still obligated to report all crypto transactions. Not receiving the form is not a valid excuse for not reporting.
Q13: Are Coinbase staking rewards taxable?
Yes. Staking rewards are taxable as ordinary income at fair market value when received. The cost basis for future sale is the FMV at the time the reward was issued. Coinbase earned $152M in blockchain rewards revenue in Q4, down 18% QoQ.
Q14: What about international reporting — CARF 2027?
Starting 2027, the Crypto Asset Reporting Framework (CARF) will enable 48 countries to automatically exchange crypto transaction data. U.S. taxpayers using offshore exchanges will face much tighter scrutiny. Coinbase, as a U.S.-regulated exchange, already reports to the IRS. CARF 2027 Guide →
Q15: Should I switch from Coinbase to another exchange for tax purposes?
Switching exchanges doesn't solve the tax problem — it creates more complexity. Every transfer between exchanges is a potential tracking event. The real solution is proper documentation and per-wallet cost basis tracking using crypto tax software, regardless of which exchange you use.
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