Key Takeaways
- • Coinbase (COIN) fell 8.31% to $147.24 and Strategy (MSTR) fell 8.39% to $129.74 in the opening minutes Friday, while Robinhood (HOOD) fell 8.31% to $83.98, as crypto-linked stocks sold off more sharply than the Nasdaq-100.
- • Binance disclosed a security incident affecting about $6.3 billion; Chainalysis called it the largest crypto hack in history, and Elliptic put the stolen total at $6.43 billion.
- • Bitcoin was quoted at $77,050.96, down 3.91%, at 9:31 a.m. ET, while the Invesco QQQ Trust fell 2.65%, indicating the crypto-stock declines outpaced the broader index.
- • Coinbase's September-quarter transaction revenue fell about 44% to $590.2 million, and Robinhood's crypto revenue fell 55% to $120 million, so earnings weakness predates the breach.
- • The source does not isolate how much of the decline stemmed from the hack versus earnings, technology-sector selling, and falling bitcoin prices.
Summary
Coinbase, Strategy (formerly MicroStrategy), Robinhood, Circle and Riot fell sharply in early Friday trading after Binance disclosed a security incident affecting about $6.3 billion, according to the source article. Coinbase fell 8.31% to $147.24 and Strategy fell 8.39% to $129.74 at the open, while Robinhood, Circle (down 7.43%) and Riot (down 6.95%) also declined. By about 9:35 a.m. ET, Strategy had fallen 11.08% to $125.93, with SpaceX down 4.29% and Tesla down 3.59%, while PayPal rose 0.25%. The Invesco QQQ Trust was down roughly 2.65% to 2.90% over the same period.
The hack is described as the largest in crypto history. Chainalysis made that characterization, and Elliptic put the stolen total at $6.43 billion, compared with $1.46 billion for the 2025 Bybit hack. Binance's own estimate is about $6.3 billion. Binance said it would cover losses using its user-protection fund and company funds, and temporarily suspended withdrawals for security checks while stating that deposits remained unaffected. Bitcoin was down 3.91% by 9:31:43 a.m. ET, hours after funds began leaving Binance wallets Thursday afternoon, according to Chainalysis.
The declines coincided with pre-existing company-specific pressures. Coinbase's third-quarter filing showed transaction revenue of $590.2 million, down from $1.046 billion a year earlier, and total revenue of $1.216 billion versus $1.869 billion. The company still reported $719 million in net income and a 10.7% share of crypto trading volume, its fourth consecutive quarter of share gains. Strategy reported 848,517 bitcoin as of Oct. 25, and announced that CFO Andrew Kang would step down Nov. 5. Robinhood's crypto revenue fell 55% even as total revenue rose 12% to $1.42 billion. Broader technology weakness also contributed, with Amazon and Intel both reporting Thursday, including Intel's warning that the PC slowdown could continue through the first half of next year.
The source article cautions that the early-trading figures are a snapshot and do not establish causation. Coinbase, Robinhood, Circle and Riot do not appear in the Invesco QQQ's holdings, so their declines are not Nasdaq-100 moves. The article notes that the picture reflects industry security concerns, lower cryptocurrency prices and company-specific results rather than a single verified cause, and that post-incident customer or volume data would be needed to assess any migration of Binance users to Coinbase.
The hack is described as the largest in crypto history. Chainalysis made that characterization, and Elliptic put the stolen total at $6.43 billion, compared with $1.46 billion for the 2025 Bybit hack. Binance's own estimate is about $6.3 billion. Binance said it would cover losses using its user-protection fund and company funds, and temporarily suspended withdrawals for security checks while stating that deposits remained unaffected. Bitcoin was down 3.91% by 9:31:43 a.m. ET, hours after funds began leaving Binance wallets Thursday afternoon, according to Chainalysis.
The declines coincided with pre-existing company-specific pressures. Coinbase's third-quarter filing showed transaction revenue of $590.2 million, down from $1.046 billion a year earlier, and total revenue of $1.216 billion versus $1.869 billion. The company still reported $719 million in net income and a 10.7% share of crypto trading volume, its fourth consecutive quarter of share gains. Strategy reported 848,517 bitcoin as of Oct. 25, and announced that CFO Andrew Kang would step down Nov. 5. Robinhood's crypto revenue fell 55% even as total revenue rose 12% to $1.42 billion. Broader technology weakness also contributed, with Amazon and Intel both reporting Thursday, including Intel's warning that the PC slowdown could continue through the first half of next year.
The source article cautions that the early-trading figures are a snapshot and do not establish causation. Coinbase, Robinhood, Circle and Riot do not appear in the Invesco QQQ's holdings, so their declines are not Nasdaq-100 moves. The article notes that the picture reflects industry security concerns, lower cryptocurrency prices and company-specific results rather than a single verified cause, and that post-incident customer or volume data would be needed to assess any migration of Binance users to Coinbase.
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