TLDR

  • Coinbase shares dropped 4.36%, extending their losing streak to eleven consecutive sessions.

  • Nevada regulators initiated legal action against Coinbase regarding unlicensed prediction markets.

  • An internal security breach exposed sensitive data belonging to approximately thirty clients.

  • Analysts foresee lower earnings despite strong projections for revenue growth.

Coinbase’s stock continued its consistent downturn as legal and security concerns weighed on investor confidence. The shares experienced a significant drop on Tuesday, prolonging a series of losses. Market participants are keenly observing the company as its upcoming earnings report approaches.

Coinbase Global Inc. concluded trading down 4.36% at $179.66, marking its eleventh consecutive day of losses. The stock is currently trading at its lowest point since April. This downturn has driven the shares significantly below their critical moving averages.

Coinbase Nevada Lawsuit Targets Prediction Market Operations

Regulatory scrutiny heightened following the Nevada Gaming Control Board’s filing of a civil enforcement action against Coinbase Financial Markets. The complaint asserts that the company provided unlicensed betting options related to sports events via its prediction markets. Regulators have sought both a temporary restraining order and a preliminary injunction.

“The Board is committed to its duty to safeguard Nevada residents,” stated Mike Dreitzer of the Nevada Gaming Control Board. This lawsuit comes after Coinbase recently declared its expansion of prediction markets across the nation, facilitated by a collaboration with Kalshi.

This action mirrors comparable state-level measures previously taken against . A Nevada court recently prevented that platform from providing event-based contracts to its residents. These instances prompt inquiries into the interplay between state regulatory bodies and federal supervision of prediction markets.

Insider Breach Adds to Security Concerns

Coinbase additionally revealed an internal security breach impacting approximately thirty clients. A contractor gained unauthorized access to sensitive customer data in December. The compromised information encompassed names, contact details, birth dates, and Bitcoin wallet balances.

The person implicated is no longer an employee of the company. Coinbase stated that affected users received notifications and were provided with identity theft protection services. This event occurred after another security problem in early 2025, which was connected to a third-party service provider.

Although no funds were lost in the breach, it intensified pressure at a period when trust is paramount. Security and compliance continue to be crucial considerations for investors assessing cryptocurrency exchanges.

Technical Weakness and Earnings Expectations

The technical picture remains unfavorable. The stock has exhibited a “death cross” pattern, where the 50-day moving average has dropped below the 200-day average. Relative strength indicators indicate ongoing underperformance when compared to the wider equity markets.

The stock’s decline also reflects downturns in the broader cryptocurrency market. Bitcoin was trading around $80,000, significantly below its October high. Coinbase’s revenue frequently correlates with trading activity, which has decelerated amidst market uncertainty.

For the upcoming period, analysts anticipate Coinbase will announce earnings of $1.06 per share on revenues totaling $1.8 billion. Although revenue is forecast to increase substantially year-over-year, profits are predicted to decrease relative to the previous year. The earnings report is slated for February 12, and investors maintain a cautious stance given the ongoing regulatory and security challenges.