Circle Sinks 12%, Coinbase and Strategy Tumble 10% as Bitcoin Slide Hits Crypto Stocks
Circle landed an analyst upgrade and an earnings beat, yet its shares still got hammered. A closer look at the numbers behind that beat shows why good news could not shield crypto stocks when Bitcoin turned.
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A sharp reversal in Bitcoin (CRYPTO:BTC) is pulling crypto-linked stocks lower together, and fresh good news at a leading stablecoin issuer isn’t offering any shelter. Circle Internet Group (NYSE:CRCL | CRCL Price Prediction) stock is at $67.25, down 12% in afternoon trading. The company’s shares are slipping despite an analyst upgrade and a fresh earnings beat.
At the same time, Coinbase Global (NASDAQ:COIN) stock is at $135.93, down 10%. Strategy (NASDAQ:MSTR) stock is at $128.54, also down 10%. At $75,626.95, Bitcoin is down 6% over the past 24 hours.
Bitcoin’s Post-Midterm Rebound Unravels
Bitcoin is declining sharply, reversing its post-midterm rebound as investors dumped riskier assets in a broad stock sell-off.
The token is also down 12% over the past month, so the latest drop extends a slide that was already underway, more or less. Circle Internet, Coinbase and Strategy shares are trading as a group with it.
Circle Internet Falls Despite an Upgrade
Compass Point upgraded Circle Internet to Buy on November 5. The firm set a $99 price target, calling the stock “the best large-cap proxy for crypto exposure.” The firm described the upgrade as a “tactical trade,” and the sector sell-off overwhelmed it anyway.
On November 4, Circle Internet reported Q3 2026 earnings per share of $0.84, ahead of the $0.38 consensus. A one-time item did much of the work: $182 million of Arc token presale revenue. Excluding the presale, the company’s other revenue was $25 million, down 11% year over year.
Circle Internet’s ending USDC circulation was $73.9 billion, flat year over year, and its reserve income fell 8% as its reserve return rate declined. Management noted that expanded distribution deals with Binance and Hyperliquid could weigh on Q4 2026 margins.
Coinbase Leans on Custody After Binance Hack
Coinbase is trading against a rattled exchange background. CryptoProwl reports $6.3 billion of bitcoin was stolen in a record Binance hack on October 29, and nearly $12 billion in crypto and cash has left Binance since.
In a blog post, Coinbase stated that 99% of its customers’ digital assets sit in cold storage. The exchange added that customer assets are fully backed and never lent out without authorization. Weak trading had already weighed on the company, with Coinbase’s Q3 revenue of $1.22 billion down 35% year over year as crypto volatility sat near multi-year lows.
Strategy, Robinhood, and MARA Track Bitcoin
As the largest corporate owner of Bitcoin, Strategy trades as a leveraged proxy on the token, and that leverage magnifies bitcoin’s swings in both directions, so the company is falling harder than bitcoin itself.
Robinhood Markets (NASDAQ:HOOD) stock is at $77.72, down 11%. Bitcoin miner MARA Holdings (NASDAQ:MARA) stock is at $5.94, down 14%. MARA is the biggest decliner of the five names, while Robinhood is falling less than Circle Internet and more than Coinbase.
How Circle Internet’s Model Differs From Coinbase and Strategy Inc.
Circle Internet makes most of its revenue from interest on the Treasury reserves backing USDC, so its results lean on interest rates and stablecoin demand more than on Bitcoin’s price. Coinbase collects transaction fees that rise and fall with crypto trading activity, plus subscription and stablecoin revenue. Strategy pairs a legacy enterprise software business with a Bitcoin treasury financed through preferred stock and convertible debt.
That mix makes Strategy Inc. the most direct play on bitcoin of the three and Circle Internet the least direct, and Compass Point’s view is that Circle Internet still trades with crypto sentiment, and the sell-off shows that link working in reverse.
What’s Next for Crypto Stocks After Bitcoin’s Slide
Stifel’s Brian Gardner said the Clarity Act is “off the table for the lame duck session,” according to Yahoo Finance. Gardner also expects investigations of crypto firms. He says Senator Elizabeth Warren, poised to chair the Senate Banking Committee, poses a risk for regulated names like Coinbase and Circle Internet. Fundstrat’s Sean Farrell argued that a Democratic Congress could boost bitcoin’s appeal as a deficit hedge.
Broader markets add another hurdle, with the October jobs report due November 6. The next test for Circle Internet, Coinbase and Strategy Inc. is whether bitcoin can find its footing after the reversal.
The bulls can cite Circle Internet’s upgrade and Coinbase’s custody pledges. Meanwhile, Circle Internet’s margin pressure, a stalled bill in Washington and Strategy’s leverage to a falling token give the bears plenty to argue. For investors, a cautious approach would be prudent until Bitcoin’s slide ends.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
