Coinbase (NASDAQ: COIN) stock continues to drop after the crypto exchange went through a major service disruption.
The outage, which lasted more than six hours, disrupted several core platform functions, leaving users unable to access trading services, manage their portfolios, and complete other account-related operations.
Expectedly, the disruption has drawn significant attention across the digital asset sector, given Coinbase’s reputation as a leading crypto exchange platform.
An early Reuters report implied the problem could be related to similar issues with Amazon’s (NASDAQ: AMZN) data center zones in Virginia.
At press time, COIN shares were down 2.53% on the daily chart and an additional 2.57% in pre-market on May 8, where they sat at $188.
Coinbase hit by outages following mixed quarterly reports
The outage also came shortly after Coinbase reported a first-quarter net loss of $394.1 million, compared to a profit of $65.6 million a year earlier. Unsurprisingly, the results reflect a broader slowdown in crypto trading activity that weighed on the sector in early 2026.
“Macro conditions were genuinely tough. Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter,” Chief Financial Officer Alesia Haas said during the company’s earnings call.
Moreover, transaction revenue, one of the core income drivers for the platform, declined no less than 40% year-over-year due to lower crypto market capitalization and trading volumes.
In response, Coinbase announced a number of cost-cutting measures, including layoffs and new overseas business strategies. Overall, management aims for over 30% operating expense reduction.
Earlier this week, Coinbase already cut approximately 700 jobs (14% of its global workforce), attempting to trim costs and reposition itself as it prepares to explore artificial intelligence (AI).
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