Crypto stock selloff: MicroStrategy shares plunge 17% as Coinbase, Marathon and Riot also fall

Equities • April 30, 2024, 1:55PM EDT

Published 1 minute earlier on

Quick Take

Major U.S. crypto stocks like bitcoin stockpiler MicroStrategy, top exchange Coinbase and more all experienced significant losses in Tuesday’s trading session.
MicroStrategy reported first-quarter revenue of $115.2 million, a 5% year-over-year decrease.

After reporting it missed on earnings, and with the price of bitcoin down, MicroStrategy's shares plummeted on Tuesday by as much as 17% before recovering slightly.

MicroStrategy was trading down 15.8%. at $1,086 as of 1:45 p.m. ET, according to Yahoo Finance. Last month, the company's shares also once fell by as much as 16%.

While fellow U.S. crypto stocks like Coinbase, the nation's top exchange, and miners Marathon Digital and Riot Platforms didn't face as large of a selloff, all three companies' shares were also down in midday trading. Coinbase sank as low as 6% while Marathon Digital and Riot Platforms dropped 9% and 7%, respectively.

Shares in the aforementioned miners have seesawed most of this year while both Coinbase and MicroStrategy have largely been enjoying an upward price increase amid bitcoin hitting a new all-time high.

Following Monday's market close, MicroStrategy reported first-quarter revenue of $115.2 million, which was a 5% decrease year-over-year. The company's shares, which act as a bitcoin proxy given MicroStrategy's main tactic for creating long-term value is by accumulating the cryptocurrency, dropped in after hours trading.

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Bitcoin was trading hands down 4.5% at $60,093 at publication time, according to The Block Price Page.

Other bitcoin mining stocks dropped in parallel to the world's largest cryptocurrency by market cap falling in price. CleanSpark fell by 9% while Bitfarms and Hut 8 also shed value, falling 6% and 5%, respectively.

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About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.