Coinbase Stock Falls 14.2% Despite Strong Quarterly Results Amid Binance Security Shock
Key Facts
Coinbase shares fell 14.2% on Friday, October 30, despite the company reporting third-quarter results that beat analysts’ expectations, according to the Associated Press. The decline came amid pressure on cryptocurrency stocks following a security incident at Binance, which the platform estimated had an overall impact of about $6.3 billion. Binance said in its update that it had frozen about $3 billion in affected on-chain assets. The company described the incident as under investigation and pledged to cover the losses. In extended U.S. trading on the evening of October 29, Coinbase shares had fallen 4.8%, while Strategy shares were down about 6%, according to Reuters via MarketScreener.
Coinbase reported net income of $719 million in the third quarter of 2026, alongside adjusted net income of $78 million, according to its investor relations statement. Adjusted EBITDA was $333 million, up 60% from the previous quarter. The company said this marked its fifteenth consecutive quarter of positive adjusted earnings. These figures reflect a difference between the two income measures the company reported, with both covering the same quarter. Still, the stock fell in the session despite quarterly results exceeding analysts’ expectations, according to the Associated Press.
The company’s results pointed to an improved share of trading activity, with Coinbase accounting for 10.7% of cryptocurrency trading volume in the third quarter. Coinbase said this marked its fourth consecutive quarter of market-share gains. Its prediction markets also exceeded $200 million in annualized revenue, while subscription and services revenue accounted for 49% of net revenue during the quarter. These indicators highlight revenue sources beyond trading, which is directly tied to transaction volumes in crypto assets. But they did not prevent the stock from falling on results day, according to the Associated Press.
At Binance, the platform said it estimated the incident’s overall impact at about $6.3 billion, and that its blockchain-industry partners had helped freeze about $3 billion in affected on-chain assets. The Associated Press cited TRM Labs as saying the attacker moved about $6.36 billion from Binance wallets across ten blockchains, with most transfers taking place over about 20 minutes. TRM Labs attributed the attack, with high confidence, to North Korea’s TraderTraitor group. The transfer figures attributed to TRM differ in wording from Binance’s estimate of the incident’s impact, which the company reported in its update. Binance said its preliminary investigation indicated the incident may be linked to a compromised laptop belonging to a DevOps engineer, and that it had found no evidence of private wallet keys being leaked.
The Binance incident drew a fresh comparison with an earlier hack in the sector: the Associated Press reported that Bybit suffered losses of $1.5 billion in an attack in February 2025. The agency said the Federal Bureau of Investigation attributed responsibility for that attack to North Korea and the TraderTraitor group. In its update on the current incident, Binance said deposits were unaffected, but it had temporarily halted withdrawals to conduct security checks. The platform expected withdrawals to resume within the next day or two, according to the Associated Press. Binance also said it would cover all losses from its SAFU fund and company funds, and stressed that user funds were safe.
Binance said it would publish an updated proof of reserves after remediation was complete, along with a detailed technical report after the investigation concluded and the facts were verified. The forthcoming update links the response to the incident’s effects with the completion of the security checks that followed. The company did not specify a date for those publications in its statement, saying only that they would follow the completion of remediation and the end of the investigation. Meanwhile, the platform kept withdrawals temporarily suspended, according to the Associated Press, while expecting them to resume within the next day or two. Binance said the next steps would be to address the incident and clarify its details.