Key Highlights

● Shares fell about 6.4% pre-market as Bitcoin dropped to an overnight low of $76,400.

● Binance suspended withdrawals after hackers took about $6.3 billion.

● Third-quarter Operating Income was about $21 billion, a record, driven by bitcoin gains.

● CFO Andrew Kang will step down on November 5 for personal reasons.

Strategy (NASDAQ:MSTR) shares were down 6.4% in pre-market trading Friday, according to a crypto news report updated at 6:06 a.m. ET. Another market data feed showed a 6.07% decline, and a third source put the stock near $134. The company, formerly known as MicroStrategy, holds more bitcoin than any other public company, so its shares tend to move as a leveraged bet on the cryptocurrency.

Bitcoin's bad night lands on its biggest corporate holder

The main driver is the crypto market. Binance, the world's largest crypto exchange, suspended withdrawals after hackers took about $6.3 billion, which one report said has been described as the largest crypto heist on record. Two analytics firms attributed the attack to North Korea-linked hackers, and Binance said around $3 billion of the stolen Assets has been frozen, according to the crypto news report. A separate headline said Binance has arranged $6.34 billion to cover losses.

Bitcoin fell to an overnight low of $76,400, its lowest since September 18, before recovering to about $77,350 at 7:09 a.m. ET, according to the same report. Crypto futures liquidations jumped fourfold to $1.57 billion, and a crypto Fear and Greed index dropped to 36 from 43. Other crypto-linked stocks, including Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD), Riot Platforms (NASDAQ:RIOT) and MARA Holdings (NASDAQ:MARA), were each down roughly 5% pre-market, according to market data.

A record quarter and a CFO departure

Strategy reported third-quarter results after Thursday's close. According to a stock news feed and the crypto news report, the company posted operating income of about $21 billion, a record, and diluted Earnings of $44.75 a share, against a pre-week consensus of $21.50 compiled by the news feed. Those profits largely reflect gains in the Market Value of its bitcoin during the quarter under fair-value accounting, which means they can reverse when the price falls, as it has this week. One source grouped Strategy among crypto companies that missed one or both of their estimates, a characterization that conflicts with the figures above and likely reflects a different comparison basis.

The company held 848,517 bitcoin as of October 25, up 26% since the start of the year, after raising $21 billion of Capital year to date, according to the crypto news report.

The same filing disclosed that chief financial officer Andrew Kang will step down on November 5 for personal reasons. Strategy said the decision was "not the result of any disagreement" over its operations, policies or practices. Kang will stay on as an adviser through December 31. Chief executive Phong Le will oversee finance during the transition, and Reza Virasteh, executive vice president of operations, becomes co-principal financial officer on January 1.

Index role, risks and what to watch

Strategy is a member of the Nasdaq-100, where it gives the tech-heavy index direct exposure to bitcoin. Its slide adds to pressure on a benchmark whose futures were already down about 2.6% around 8 a.m. ET, per market quotes, on AI spending fears. The stock was down 44% over the past year, according to market data, and another report said it trades about 51% below its 52-week high.

Key risks include further bitcoin declines, the cost of the preferred stock and Debt Strategy has issued to buy bitcoin, and the possibility that investors become less willing to fund new purchases. Policy is another factor: a Democratic sweep in Tuesday's midterms could bring more scrutiny of crypto firms, according to news reports. Traders will watch bitcoin's ability to hold the $76,000 area, updates from Binance on withdrawals and recovered funds, and US spot bitcoin ETF flows, which were positive for a fourth straight day on Thursday.