Coinbase leads crypto stock selloff following $6.3B Binance hack
Circle, Strategy and other crypto-linked stocks fell sharply Friday, a day after Binance disclosed a $6.3 billion security breach.
Shares of publicly traded cryptocurrency companies plummeted sharply on Friday, a day after Binance revealed a $6.3 billion security breach. Coinbase experienced the most significant decline, falling more than 13% following a decline in third-quarter revenue. Circle Internet Group (CRCL) and Bitcoin treasury company Strategy (MSTR) also saw substantial drops, with CRCL falling over 9% and Strategy down about 8%.
The market-wide sell-off was triggered by the Binance breach, which was disclosed earlier in the week. Coinbase and Strategy both reported third-quarter earnings on Thursday, with Coinbase reporting $719 million in net income due to significant gains on cryptocurrency investments, despite a 34% year-over-year decline in revenue to $1.16 billion.
Strategy reported a net income of $19.53 billion, driven largely by a $20.91 billion gain in the value of its Bitcoin holdings, while revenue declined by 3% year-over-year to $125.4 million. The company also announced that Andrew Kang would be stepping down as chief financial officer on November 5. Other crypto-linked stocks, including Bitcoin mining and data center operator IREN (IREN) and blockchain-based financial services company Figure Technology Solutions (FIGR), also saw declines, with IREN falling over 10% and FIGR dropping about 9%.
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