Coinbase, Crypto Stocks Fall After $6.3B Binance Hack

Crypto-linked stocks sold off Friday following Binance’s $6.3 billion security breach. Coinbase shares fell more than 13%, while stablecoin issuer Circle Internet Group dropped over 9% and Bitcoin treasury company Strategy slid about 8%. Bitcoin mining and data center operator IREN lost more than 10%, while Figure Technology Solutions fell roughly 9%, according to Yahoo Finance data at the time of writing.

Binance confirmed that hackers stole approximately $6.3 billion in what the exchange described as the largest cryptocurrency theft on record. The company said it is working with the FBI and other authorities to recover the stolen assets. The incident added to pressure on crypto-related equities already affected by company earnings and changing market conditions.

Coinbase’s decline also followed a weak third quarter in which net revenue fell 34% year over year to $1.16 billion. The exchange reported $719 million in net income, including approximately $715 million in gains on cryptocurrency investments, while adjusted net income was $78 million. Coinbase also said its prediction markets business had surpassed $200 million in annualized revenue.

Strategy reported $19.53 billion in net income, largely driven by a $20.91 billion increase in the value of its Bitcoin holdings, although revenue declined 3% year over year to $125.4 million. The company also announced that Chief Financial Officer Andrew Kang will step down on Nov. 5. Together, the market moves reflected both the fallout from the Binance breach and concerns surrounding crypto-linked companies’ earnings performance.