Coinbase, MicroStrategy Stocks Tank Alongside Crypto Market

Key Takeaways

  • Companies with cryptocurrency dealings have sustained significant losses in market value today.
  • Major losers include Coinbase, which has hit its all-time low, and MicroStrategy, the value of which is lower than its underlying Bitcoin holdings.
  • Other crypto stocks and coins are down today as well.

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Two of the most prominent cryptocurrency-related stocks are enduring significant losses today: Coinbase and MicroStrategy are down almost 9% since today’s market open, with others registering losses as well.

Crypto Market Sell-Off Extends to Stocks

The recent depression in stock prices has been especially bad for many companies related to cryptocurrencies.

Crypto companies have been devastated in recent weeks, with Coinbase and MicroStrategy suffering double-digit losses today alone. Today, Coinbase hit all-time lows since going public last April, wicking down to just over $162 per share. MicroStrategy hit its 52-week low today, touching $319.01 per share; the stock enjoyed prices of $1,315 less than a year ago. The price of MicroStrategy shares currently sits at prices that represent only slightly more than a doubling since before the company started buying Bitcoin in 2020.

The recent situation has been so grave for MicroStrategy that the company’s market capitalization now hangs below the value of the Bitcoin it holds. MicroStrategy’s capitalization is down to around $3.45 billion, but the value of its 124,391 Bitcoin (the amount it was known to hold as of Dec. 29), at the current price of approximately $34,000 per Bitcoin, is roughly $4.23 billion.

Other significant digital assets-related stocks are down, too. Galaxy Digital, Mike Novogratz’s crypto financial services and investment management firm, was dealt a 9% blow to its valuation today alone. Crypto mining companies such as Marathon, Riot, and Hut 8 are down roughly 3%, 5%, and 7% respectively since Monday’s market open.

Even Jack Dorsey’s Block—formerly Square—is down 6%, having also touched its 52-week low today.

The two blue-chip crypto coins are both down today, though BTC, down less than .5% over 24 hours at press time, is struggling less than ETH, which is down 4% on the day. Solana’s SOL and Polygon’s MATIC are also standout losers today, down 9% and 10%, respectively.

Major indices of the U.S. stock market like, such as the Nasdaq and the S&P 500, have fallen around 2.5% today.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.

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