After being attacked by hackers, Binance's concept stocks declined, with Coinbase falling by 12.5%

On October 30th, during trading, the largest decline was seen among crypto concept stocks, reaching 12.54%. Among them, Coinbase led the decline after releasing its quarterly financial report, and Binance experienced a security vulnerability worth $6.3 billion.

• Coinbase fell by 12.54%, while Riot, Hut, and Robinhood all saw declines of over 8%.
• Strategy rebounded from its intraday lows, but still fell by 6.23% to close at $132.80.
• Coinbase reports that although the company has regained quarterly profitability, transaction revenue has decreased by 44% year-on-year.
• Binance indicates that company funds will be used to replenish the stolen assets, and purchasing activities have already begun in both exchanges and over-the-counter markets.

As of around 11:25 a.m. Eastern Time on October 30th, market data showed that Coinbase, Strategy, Robinhood, BitMine, and all 5 mining companies experienced declines, although several of these stocks have since rebounded from their intraday lows. The percentage drops ranged from 4.89% for BitMine Immersion Technologies to 12.54% for Coinbase.

Coinbase closed at $140.46, down $20.13 from the previous trading day's close. The stock touched $136.93 earlier in the session before regaining some of its losses. It opened at $147.43, with a high of $153.60 during the session.

The sell-off affected mining companies, trading platforms, and corporate holders of cryptocurrencies. Among these 9 stocks, calculated on a weighted average basis, the average decline was approximately 7.48%.

Mining companies and trading platform stocks generally fell.

Riot Platforms fell by 8.70% to $12.545; Hut fell by 8.51% to $60.785. Robinhood reported $84.17, a decrease of 8.10%, after reaching as low as $82.37 during the session.

IREN fell 6.86% to $24.45; MARA fell 6.49% to $6.70. CleanSpark dropped 5% to $7.79; BitMine fell 4.89% to $20.60.

MARA fell to $6.485 earlier in the session before rebounding to $6.70. CleanSpark rebounded from a low of $7.505 to $7.79, while BitMine rebounded from $19.77 to $20.60.

At the same time, the benchmark index of the U.S. stock market is also falling. The Invesco QQQ Trust, which tracks the Nasdaq 100 index, fell by 2.83% to $695.08; the SPDR S &P 500 ETF Trust fell by 1.36% to $758.87.

Among this group of encrypted concept stocks that were statistically analyzed, the percentage decline for each stock is greater than that of the aforementioned two funds. The decline of Coinbase is about 9.71 percentage points higher than that of QQQ, while the decline of Riot is 5.87 percentage points higher.

In the subsequent market snapshot, Bitcoin was reported at around $77,454, showing a daily decline of 5%, with a intraday low of $76,460. Stock return rates are calculated based on the closing price of the previous trading day, whereas Bitcoin is traded continuously.

The intraday low of Coinbase was approximately 14.7% lower than its previous closing price of $160.59. The intraday low of Strategy was $124.34, which is about 12.2% lower than its previous closing price of $141.62; subsequently, the stock price rebounded to subsequent quote levels. Both calculations use the same previous closing reference value as for daily stock returns.

Coinbase Financial reports show weakening transaction revenue

Apart from exchange security incidents, the financial reports of Coinbase also represent another development at the company level. The company's transaction revenue in the third quarter was 590.2 million US dollars, a year-on-year decrease of 44%, and a 1% decline compared to the previous quarter.

Total revenue amounted to 1.216 billion US dollars, a year-on-year decrease of 35%. Net profit was 718.7 million US dollars, compared to a loss of 359.5 million US dollars in the second quarter; after adjustment, EBITDA was 332.9 million US dollars.

Consumer transaction revenue amounted to 450 million US dollars. Coinbase indicates that during the quarter, consumer spot trading volume decreased by 9%, and consumer derivatives trading volume decreased by 6%, but the growth in forecasted market business mitigated the impact on revenue.

Institutional transaction revenue decreased by 8% compared to the previous quarter, to $92 million. Subscription and service revenue amounted to $570.2 million, showing a 3% increase month-on-month but a 20% decrease year-on-year.

Binance commits to using reserves to replenish the stolen tokens

During the period of decline in related stocks, the recovery work for Binance is also progressing. As previously reported by crypto.news, the estimated impact of the security vulnerability on October 29th was $6.3 billion. According to the exchange, the company has committed to covering the customers' losses.

In the update on October 30th, Binance indicated that more than $6.34 billion of company funds have been reserved, including approximately $5 billion in affected cryptocurrencies that are already held. The company also stated that about $3 billion has been frozen through industry collaboration, and this amount is calculated separately from the reserve funds they committed to utilize.

Binance has begun to repurchase stolen altcoins through exchanges and over-the-counter trading desks. Co-founder He Yi stated that the company has access to positions including Bitcoin and Ethereum, but did not disclose how much of these assets will be sold.

The company stated that due to the limited liquidity of some tokens and off-exchange settlement factors, some alternative purchases may take longer.

Strategy rebounded from the morning session low point

Strategy traded at $132.80, down 6.23%, after previously falling to $124.34. Based on the reported quotes, its latest price is about 6.8% higher than the intraday low.

A document submitted by the company on October 26th shows that it has accumulated a purchase of 848,517 BTC, with a total cost of 64.02 billion US dollars (including fees). As of the week ending October 25th, Strategy did not buy or sell any bitcoins.

During this period, the company repurchased STRC preferred stocks for a total amount of $204.9 million, acquiring 2,068,459 shares in total. The documents indicate that after the transaction was completed, the company's designated US dollar reserves amounted to $4.83 billion, with $242.4 million in cash.

Strategy indicates that no shares were sold during the week according to its market price issuance plan. There is still a remaining authorization of $956.8 million for the repurchase of its preferred stock, and an additional authorization of $1 billion for the repurchase of MSTR common stock is still available. The company stated that no common stock repurchases were conducted during the period covered by the information disclosed on October 26th.