Shares of publicly traded cryptocurrency companies fell sharply on Friday, led by Coinbase (COIN), which dropped more than 13% a day after reporting a decline in third-quarter revenue, as the industry dealt with the fallout from Binance's $6.3 billion hack.

Other crypto-linked stocks also declined, according to Yahoo Finance data at the time of writing. Stablecoin issuer Circle Internet Group (CRCL) fell more than 9%, while Bitcoin treasury company Strategy (MSTR) dropped about 8%. Bitcoin mining and data center operator IREN (IREN) saw its shares slide more than 10%, and blockchain-based financial services firm Figure Technology Solutions (FIGR) lost about 9%. The declines cut across the sector's main public-market segments — exchanges, stablecoin issuance, Bitcoin treasury holding, mining, and financial services — rather than being confined to a single company.

Source: Yahoo Finance

The selloff followed Thursday's disclosure of the Binance breach. The exchange confirmed on Friday that hackers stole approximately $6.3 billion in the largest cryptocurrency theft on record. In related coverage, Cointelegraph reported that Binance is working with the FBI to recover assets following the hack. The scope of any assets recovered remains to be seen.

Crypto Gains Lift Coinbase and Strategy Profits as Revenue Falls

Coinbase and Strategy both reported third-quarter earnings on Thursday, with gains on their crypto holdings lifting profits even as revenue declined — a split that underscored how much of each company's quarterly profit came from the value of its digital-asset holdings rather than operating revenue.

In its earnings release, Coinbase reported $719 million in net income, boosted by roughly $715 million in gains on cryptocurrency investments. Adjusted net income, which excludes investment gains and other items, came in at $78 million — meaning most of the headline profit came from investment gains rather than core operations. Net revenue fell about 34% year over year to $1.16 billion. The exchange also said its prediction markets business surpassed $200 million in annualized revenue, a business line it highlighted even as overall net revenue declined.

In a press release, Strategy reported $19.53 billion in net income, driven largely by a $20.91 billion gain in the value of its Bitcoin (BTC) holdings. Revenue declined 3% year over year to $125.4 million — a fraction of the size of the quarter's holdings-driven gain. The company also announced that Andrew Kang will step down as chief financial officer on Nov. 5.