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Shares of crypto companies are plunging along with the value of digital currencies.
AFP via Getty Images
As the sharp selloff in
Bitcoin
and other cryptocurrencies persist, companies who have tied their fortunes to Bitcoin’s mast are falling with it.
Shares in cryptocurrency exchange
Coinbase Global
(ticker: COIN) fell 7.7% to $49.61, adding to the previous session’s losses of 26.4% after the company posted disappointing earnings. The company also warned that investors could lose their crypto holdings if it goes bankrupt.
MicroStrategy
(MSTR), a software company that has extensive Bitcoin holdings and is adding exposure to the cryptocurrency as an option for workers’ 401(k) plans, was down 9% in premarket trading Thursday. The stock fell more than 25% on Wednesday.
Digital payments group
Block
(SQ) lost 2.8%. Bitcoin miners
Riot Blockchain
(RIOT) fell 6.1% and
Marathon Digital
(MARA) dropped 6.8%.
Bitcoin was falling nearly 10% on Thursday to $27.868, having now given up about 60% since its November peak. TerraUSD (UST), the stablecoin that lost its fix against the dollar and may have helped trigger the crypto plunge, traded at about 20 cents.
The overall market capitalization of crypto is now just above $1 trillion after falling 15% on Wednesday, according to CoinMarketCap. The value of crypto holdings reached $3 trillion six months ago.
Write to brian.swint@barrons.com