Crypto stocks plunged Friday, extending a broader decline that has left some of the industry's largest publicly traded companies more than 50% below their peaks, even as Bitcoin has held up relatively better. Coinbase, Strategy and Circle led the losses as the fallout from a major Binance security breach compounded a technology stock selloff fueled by disappointing earnings and mounting spending on artificial intelligence infrastructure.

Coinbase fell more than 12% in early trading, while Bitcoin treasury company Strategy declined approximately 10%. Circle lost around 9%, with Robinhood, MARA Holdings and Riot Platforms also recording substantial losses during Friday morning trade, according to Yahoo Finance data.

Bitcoin traded near $77,000, down approximately 4% over 24 hours and nearly 39% below its October 2025 record of roughly $126,000.

The latest losses followed a $6.36 billion security breach at Binance, which triggered a broader cryptocurrency selloff and approximately $1.57 billion in futures liquidations — the forced closure of leveraged positions when traders can no longer meet margin requirements. Binance said it would cover customer losses and reported that approximately $3 billion in affected assets had been frozen.

The selloff added to an already difficult period for crypto equities, which have significantly underperformed Bitcoin and major stock indexes in recent months. Unlike the asset itself, the shares embed operating leverage to trading volumes, financing conditions and investor appetite for risk.

Coinbase, Circle and Robinhood Enter Deep Drawdowns

Several publicly traded crypto companies were already trading deep below their previous highs before Friday's decline. According to an October 29 market breakdown from The Kobeissi Letter, published via the commentary service's X account, Coinbase had fallen approximately 56% from its peak, while Circle and Robinhood were down 44% and 40%, respectively.

Those declines exceeded Bitcoin's roughly 39% drawdown, illustrating the additional pressure facing crypto businesses beyond movements in the underlying digital assets.

Strategy was also trading approximately 51% below its 52-week high before Friday's losses, despite maintaining the largest corporate Bitcoin treasury. The company reported $19.53 billion in third-quarter net income on Thursday, driven primarily by a $20.91 billion accounting gain on its Bitcoin holdings. Strategy held 848,517 BTC as of October 25, acquired at an average price of approximately $75,446 per coin. That average cost sits roughly 2% below Bitcoin's level near $77,000 on Friday, leaving the treasury's market value only modestly above what the company paid for its holdings.

Coinbase also returned to profitability, reporting $719 million in third-quarter net income. However, approximately $715 million of that figure came from gains on cryptocurrency investments, while adjusted net income totaled just $78 million. The exchange's transaction revenue declined 44% from a year earlier to approximately $590 million, reflecting weaker trading activity despite gains in market share.

The results highlight how crypto companies face risks beyond token prices, including trading volume, profitability, financing costs and investor sentiment.

Tech Stocks Tumble After Earnings as AI Spending Concerns Mount

The weakness extended beyond crypto, as major technology companies suffered sharp declines following quarterly earnings announcements this week. With the results rolling in across recent days, earnings rather than crypto-specific developments became a central driver of the broader market's slide.

Alphabet plunged 12.6% on Thursday, erasing approximately $500 billion in market capitalization after disappointing earnings and concerns about rising AI infrastructure spending. Intel shares fell more than 25% on Friday after the chipmaker issued weaker-than-expected fourth-quarter guidance, despite reporting 21% revenue growth. Amazon also declined approximately 6% after reporting $201.9 billion in quarterly revenue and outlining plans to spend around $220 billion on capital expenditures this year.

The results renewed investor concerns over whether the enormous amounts being committed to AI infrastructure will generate sufficient returns. Attention has increasingly turned to the pace of capital spending among major technology firms and the timeline for those investments to pay off.

The technology selloff pushed the Nasdaq down approximately 2.5% during Friday's session, while the S&P 500 declined around 1.6%. The declines also followed the Federal Reserve's October 28 decision to hold interest rates at 3.75% to 4%, with two policymakers favoring another increase. Elevated borrowing costs have added pressure to growth companies and speculative assets, particularly those dependent on continued capital investment.

Bitcoin Holds Up Better Than Crypto Equities Despite Market Pressure

Despite falling nearly 39% from its all-time high, Bitcoin has demonstrated greater relative resilience than several major crypto stocks. The distinction reflects the different risks associated with owning Bitcoin directly and holding shares in companies whose businesses depend on cryptocurrency markets. The relative outperformance of the asset underscores the gap that has opened up between the token itself and the equities tied to the industry.

Exchange operators such as Coinbase depend partly on trading activity, while Bitcoin miners face operational expenses, energy costs and capital spending requirements. Bitcoin treasury companies such as Strategy also carry financing obligations and potential shareholder dilution, meaning their stock performance can diverge substantially from the cryptocurrency they hold.

The divergence has become particularly pronounced as investors reassess valuations across both crypto and technology markets. Bitcoin's decline below $80,000 has weakened market sentiment, but the larger drawdowns across crypto equities suggest investors are also pricing in company-specific risks and declining expectations for future earnings. With borrowing costs still elevated and trading activity subdued, crypto-linked shares remain exposed to a wider set of pressures than the digital assets themselves.