Publicly traded cryptocurrency companies experienced significant stock declines Friday following disclosure of a major security breach at Binance. The exchange confirmed that hackers stole approximately $6.3 billion in what the company described as the largest cryptocurrency theft on record.
Coinbase led the selloff, with shares dropping more than 13% despite the company reporting strong third-quarter earnings. The exchange posted $719 million in net income, though this figure was significantly boosted by approximately $715 million in gains on cryptocurrency investments. Adjusted net income, excluding investment gains, was $78 million. Net revenue declined 34% year over year to $1.16 billion.
Coinbase also reported that its prediction markets business surpassed $200 million in annualized revenue.
Other crypto-linked stocks also declined sharply:
- Circle Internet Group (CRCL), a stablecoin issuer, fell more than 9%
- Strategy (MSTR), a Bitcoin treasury company, dropped about 8%
- IREN, a Bitcoin mining and data center operator, fell more than 10%
- Figure Technology Solutions (FIGR), a blockchain-based financial services company, dropped about 9%
Strategy reported third-quarter earnings Thursday with $19.53 billion in net income, largely driven by a $20.91 billion gain in the value of its Bitcoin holdings. Revenue declined 3% year over year to $125.4 million. The company also announced that Andrew Kang will step down as chief financial officer on November 5.
