Coinbase, MicroStrategy Lead Crypto Stocks Lower in Market Rout
Double-digit percentage losses were the norm across the cryptocurrency sector as the Nasdaq tumbled another 4% and bitcoin plunged to just above $30,000.
May 9, 2022 at 9:28 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ATZ4VYI5N5HBLC4AOPXEQJDJZ4.jpg)
MSTR CEO Michael Saylor at Bitcoin 2022 in Miami (Danny Nelson/CoinDesk)
MicroStrategy (MSTR) stock fell 25% and Coinbase (COIN) dropped 20%, setting the tone for crypto-related equities as bitcoin (BTC) crumbled from $40,000 a few days ago to as low as $30,200 on Monday afternoon.
Checking miners, Marathon Digital (MARA) and Riot Blockchain (RIOT) each declined by 19%. Crypto banking-related names Galaxy Digital (GLXY.TO) and Silvergate Capital (SI) fell by 27% and 19%, respectively.
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/6H726FZUVRFZJLC45XEB6MEARM.png)
For Coinbase, Monday’s plunge has the stock now trading down more than 70% since its April 2021 initial public offering, with the company set to report Q1 earnings after the close on Tuesday. For MicroStrategy, CEO Michael Saylor and team made their first purchase of bitcoin in August 2020 – 21,454 coins for $11,650 each. Subsequent buys have brought holdings to more than 129,000 bitcoin at an average price of $30,700 each – meaning the company is now roughly breakeven on its purchases.
The sell-off in crypto came alongside continued major pressure on stocks, particularly in the tech sector. The Nasdaq index of stocks fell another 4.3%, the S&P 500 was down 3.2% and the DJIA declined 2%.
“Bitcoin’s long-term fundamentals have not changed in months, but growth/recession concerns have made this a very difficult environment for cryptos,” wrote Edward Moya, senior market analyst at Oanda. “No one is looking to buy the crypto dip just yet and that leaves bitcoin vulnerable here,” he added.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/83b3bbdb-5508-48a9-a9d9-2d7dd460fd5b.png)
Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.