MicroStrategy, GameStop, Coinbase & Bitcoin Miners Stocks Echo Crypto Market Crash

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MicroStrategy, GameStop, Coinbase & Bitcoin Miners Stocks Echo Crypto Market Crash – Crypto News

Published

1 year ago

June 18, 2024

Dripp

In the latest wave of market turbulence, key stocks linked to the crypto industry have taken a significant hit. These crypto stocks reflected the broader downturn in the digital asset market. Leading the decline are shares of MicroStrategy, GameStop, Coinbase, Marathon Digital, and Riot Platforms, all of which experienced notable falls during premarket trading on Monday.

The sharp downturn in these stocks is largely attributed to the recent crash in crypto prices. However, Bitcoin (BTC), the largest and oldest cryptocurrency, remained stable despite the market dip. Ethereum plummeted over 3% despite Bitcoin’s resilience. Meanwhile, altcoins like Solana (SOL), Dogecoin (DOGE) Shiba Inu (SHIB), and Toncoin (TON) took a greater hit.

MicroStrategy (MSTR)

MicroStrategy, known for its significant Bitcoin holdings, is particularly vulnerable to fluctuations in the crypto market. The company’s strategy of leveraging Bitcoin as a treasury reserve asset has been a double-edged sword. Earlier, last week, the company also announced a $700 million notes sale for further BTC accumulation.

However, the MSTR stock suffered despite the optimism around Bitcoin acquisition. At press time, the MicroStrategy stock plunged 1.94% to $1,478 in the pre-market trading session on Tuesday, June 18. On the contrary the stock gained 0.78% and closed at 1,507.26 on Monday.

GameStop (GME)

The GameStop stock primarily known as a video game retailer, has also ventured into the cryptocurrency and blockchain space. Its exploration into non-fungible tokens (NFTs) and other digital assets initially garnered positive attention. Recently, the comeback of Roaring Kitty, who spurred the 2021 GameStop rally propelled the stock price higher.

Nevertheless, the trend subsided soon with significant losses and volatile trading sessions. As of writing, the GME stock fell by 2.86% to $24.49 in premarket trading, reflecting broader investor unease about its crypto-related ventures.

Coinbase (COIN)

Coinbase, a prominent crypto exchange, has been directly impacted by the market crash. Today, the COIN stock dipped 1.81% to $240.67 in the pre-market session. Earlier this month, Coinbase CEO Brian Armstrong also offloaded over $5 million worth of COIN shares.

Bitcoin Miners’ Stocks

Marathon Digital (MARA) and Riot Platforms (RIOT) both major players in the crypto mining sector, also saw substantial declines. Marathon Digital, which focuses on mining Bitcoin, witnessed its stock drop by 1.90% to $19.64. Whilst, Riot Platforms, similarly engaged in Bitcoin mining, saw its share price drop 0.45% to $10.86.

The profitability of these companies is closely linked to the price of Bitcoin. Hence, the recent crash has raised concerns about their financial health and operational sustainability. In addition, the fourth Halving event that reduced block rewards from 6.25 BTC to 3.125 BTC also impacted the mining revenue of these firms.

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