Coinbase Tumbles 11% as Record Binance Hack Hits Crypto and Trading Revenue Slides; Strategy Sinks 12%, Robinhood Plunges 10%, Circle Drops 9%

A record theft at Binance and a weak trading quarter are pulling crypto stocks lower. Coinbase Global (NASDAQ:COIN | COIN Price Prediction) stock is at $142.50 in morning trading, down 11%. The ProShares Bitcoin Strategy ETF (NYSEARCA:BITO), a narrowly focused crypto futures fund, is at $10.26, down 5%. Meanwhile, the broader market, tracked by the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), is at $760.15, down 1%.

On October 29, Coinbase closed at $160.59. Year to date, Coinbase stock is down 37%. The stock’s 52-week low is $139.11, against a high of $361.40.

Coinbase Profit Leaned on Crypto Gains

After the close on October 29, Coinbase reported its Q3 2026 results. Net revenue at Coinbase fell 34% year over year (YoY) to $1.16 billion, missing the $1.21 billion analysts expected. The company’s headline net income reached $719 million, but a $715 million crypto investment gain supplied most of it. Excluding investment gains and tax effects, adjusted net income at Coinbase was just $78 million.

Trading took the biggest hit, with transaction revenue at Coinbase down 44% to $590 million as crypto volatility sat at multi-year lows. On an adjusted basis, the company’s earnings before interest, taxes, depreciation and amortization fell 58% YoY to $333 million, though that figure rose 60% from Q2.

Prediction markets were a bright spot, passing $200 million in annualized revenue as daily traders grew more than 60% from Q2. Coinbase also gained crypto trading market share for a fourth straight quarter. CEO Brian Armstrong said “The facts on the ground are actually looking a lot better than it’s showing up maybe in the overall numbers, which are more flat-ish.” Mizuho’s Dan Dolev called the results better than feared but said crypto remains challenged.

Barclays (Underweight) cut its Coinbase price target to $120 from $149 on a lower revenue run rate and higher costs. Canaccord (Buy) trimmed its target to $275 from $300, and JPMorgan (Overweight) moved to $187 from $189. Wells Fargo (Equal Weight) cut to $174 from $200, crediting prediction markets and USDC (CRYPTO:USDC) with cushioning a weak environment.

Record Binance Hack Rattles Crypto

Hackers stole $6.3 billion in digital assets from Binance on the evening of October 29, the largest crypto theft on record, exceeding the $1.5 billion Bybit hack in February 2025. Investigators say North Korean hackers are likely behind the attack. Binance revealed $3 billion of the affected assets has been frozen on-chain and that it’ll cover all losses.

Tether CEO Paolo Ardoino stated more than 1.567 billion USDT (CRYPTO:USDT) tied to the hack has been frozen. Jeremy Allaire, CEO of Circle Internet Group (NYSE:CRCL), announced the company froze $800 million in USDC in coordination with law enforcement. Coinbase noted it wasn’t affected.

Bitcoin (CRYPTO:BTC) is at $77,118, down 4% over the past 24 hours. Fundstrat’s Sean Farrell said the hack doesn’t appear to be a solvency event for Binance, while Standard Chartered’s Geoffrey Kendrick warned that negative price action may have further to go.

Strategy Inc., Robinhood and Circle Internet Slide

Strategy (NASDAQ:MSTR) stock is at $125.25, down 12%. As the largest corporate owner of Bitcoin, with 848,517 BTC, Strategy Inc. trades as a leveraged proxy for the coin, so it’s falling harder than Coinbase.

Robinhood Markets (NASDAQ:HOOD) stock is at $82.60, down 10%. Crypto trading and the Bitstamp exchange tie Robinhood to the same view.

Circle Internet stock is at $72.41, down 9%. Being the USDC issuer at the center of the asset freeze puts Circle Internet directly in the hack’s fallout. All four names are falling into a risk-off market after the tech-heavy index closed more than 1% lower on October 29.

How Coinbase’s Model Stands Apart

Coinbase runs a regulated U.S. exchange that’s adding subscription, stablecoin and derivatives revenue onto trading. Strategy Inc. is a bitcoin treasury company, Robinhood is a multi-asset retail broker, and Circle Internet makes most of its money from interest on USDC reserves.

What Comes Next for Coinbase After the Binance Hack

The next test for Coinbase is whether Binance reopens withdrawals and recovers more of the stolen funds. Trading volumes matter just as much, since transaction revenue is still the company’s largest line. Upcoming midterm elections matter too, given Coinbase’s heavy political spending on crypto regulation.

Bulls see growing prediction markets and stablecoin revenue cushioning weaker trading at Coinbase. Skeptics argue a deeper crypto selloff could push volumes lower still. Staying cautious could make sense until the fallout from the Binance hack resolves.

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