Crypto Stock Selling: MicroStrategy Shares Plunge 17% as Coinbase, Marathon and Riot Also Fall
Shares of MicroStrategy plummeted as much as 17% on Tuesday as the price of Bitcoin fell after the company reported missing earnings, before recovering slightly.
MicroStrategy fell 15.8%. According to Yahoo Finance, it is $1,086 as of 1:45 PM ET. Last month, the company’s stock price fell by 16%.
U.S. cryptocurrency stocks such as top U.S. exchange Coinbase, miners Marathon Digital and Riot Platforms did not face a major selloff, but shares of all three companies also closed at midday. It fell in trading. Coinbase fell as much as 6%, while Marathon Digital and Riot Platform fell 9% and 7%, respectively.
The stock prices of the aforementioned miners have been seeing-saw for most of this year, and both Coinbase and MicroStrategy have enjoyed price gains as Bitcoin reaches new all-time highs.
After the market closed on Monday, MicroStrategy reported first-quarter revenue of $115.2 million, down 5% from the year-ago period. Given that MicroStrategy’s primary strategy for long-term value creation is accumulating cryptocurrencies, shares of the company, which acts as a Bitcoin proxy, fell in after-hours trading.
Bitcoin was trading down 4.5% at $60,093 at the time of publication, according to The Block Price Page.
Other Bitcoin mining stocks fell in parallel with the world’s largest cryptocurrency as their market capitalization fell. While CleanSpark fell 9%. Bitfarms and Hut 8 also lost 6% and 5% in value respectively.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.
