WILSON FREDERICK R sold $1.8M of COIN (indirect holdings)

Circle Internet (CRCL) fell 12% to $67.25 despite an upgrade and earnings beat. Coinbase (COIN) and Strategy (MSTR) dropped 10% each as Bitcoin (BTC) declined 6% in 24 hours. Circle's Q3 EPS of $0.84 beat estimates, but revenue fell 11% YoY excluding a token presale. Coinbase's Q3 revenue dropped 35% YoY. Bitcoin's slide and broader market sell-off impacted these crypto-linked stocks.

Sandisk led declines among AI-linked stocks, dropping 10.56%, with other companies like SK hynix, Micron, and Marvell also falling. Crypto-related stocks showed mixed performance, with Coinbase and Strategy rising, while Bitdeer and Circle declined.

Morgan Stanley downgraded Coinbase (COIN) to Underweight, citing concerns over reduced retail crypto activity and the impact of a $6.3B hack at rival Binance. The bank cut its price target from $258 to $120, noting a 53% reduction in expected revenue for 2027. Coinbase's Q4 transaction revenue is projected at $607M, below Wall Street's $685M estimate. Despite the downgrade, 17 of 27 analysts still rate COIN a Buy or Strong Buy.

Binance's spot market share fell to 42% after a $6.3B hack, its lowest in 12 weeks. OKX and Coinbase gained market share. Binance's net outflows reached $5.6B, about 3.5% of total assets, with withdrawals resuming in phases. The FBI attributed the hack to North Korea's TraderTraitor group, which North Korea denies. Binance has replenished 95% of affected tokens and introduced a VIP protection program until December 2.

Coinbase (COIN) stock rose after it detailed its security measures, including offline storage for 99% of user crypto, following a $6.3B hack at Binance. Coinbase holds $377B in customer assets, per its Q3 filing, and uses a multi-key system to prevent unauthorized access. South Korea is also pushing exchanges to increase offline storage.

The U.S. Court of Appeals for the Second Circuit denied Kalshi and Coinbase's requests for an injunction pending appeal in cases against New York and Connecticut regulators. The companies argue their products fall under federal regulation, but the court did not rule on that. New York's lawsuit against Kalshi could seek $36 billion in damages, while Coinbase's prediction markets generate over $200 million in annualized revenue.