Coinbase CEO Brian Armstrong declared himself 'more bullish than ever' despite the cryptocurrency exchange reporting its second-worst quarterly loss ever of $667 million, driven by a $718 million paper loss on its crypto investment portfolio. The company's net revenue fell to $1.7 billion, down $487 million year-over-year, while adjusted EBITDA dropped 56% to $566 million, missing Wall Street forecasts by $89 million.

Armstrong's optimistic tone came during the company's earnings call Thursday, as Coinbase stock surged more than 18% Friday following the results. The CEO emphasized that the company has weathered similar crypto downturns before and pointed to regulatory clarity on the horizon. Since the October crypto peak, bitcoin and other digital assets have lost $2 trillion in market capitalization, with Coinbase stock down over 50%.

Despite the challenging environment, Armstrong highlighted Coinbase's diversification efforts, noting the company now has 12 products generating over $100 million in annualized revenue. The exchange repurchased $1.7 billion in shares over the past year, covering stock issued to employees and executives. Trading volume fell 51% to $215 billion, while retail trading fees dropped 45%, falling $41 million short of analyst projections. Armstrong remains confident about legislative progress in Washington, though he acknowledged that failure to resolve stablecoin regulations could paradoxically boost Coinbase's profitability.