Major U.S. cryptocurrency stocks, including Bitcoin hoarder MicroStrategy and major exchange Coinbase, suffered significant losses in Tuesday’s trading session. MicroStrategy reported a 5% year-over-year drop in first-quarter revenue, sending its stock price plummeting.
Shares of MicroStrategy plunged as much as 17% on Tuesday following news of revenue losses and lower Bitcoin prices. The stock has recovered slightly, but is still down 15.8% at $1,086 as of 1:45 PM ET. Last month, the company’s stock price fell noticeably by up to 16%.
Likewise, US cryptocurrency stocks such as Coinbase, Marathon Digital and Riot Platforms also suffered losses in midday trading. Coinbase fell as much as 6%, while Marathon Digital and Riot Platform recorded declines of 9% and 7%, respectively.
These mining stocks have been affected by changes in the price of Bitcoin and have experienced fluctuations throughout the year. CleanSpark, Bitfarms and Hut 8 also lost 9%, 6% and 5% in value respectively.
MicroStrategy’s first-quarter revenue fell 5% year-over-year to $115.2 million, contributing to the negative sentiment surrounding the stock. Because MicroStrategy’s primary strategy for long-term value creation includes accumulating Bitcoin, the stock often serves as a proxy for cryptocurrency performance.
Bitcoin itself was down 4.5%, trading at $60,093 at the time of publication. The fall in the price of Bitcoin led to declines in other cryptocurrency-related stocks, reflecting the interconnectedness of the cryptocurrency markets.
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