Microstrategy And Coinbase Shares Drop Amid Macro Backdrop

Microstrategy and Coinbase shares drop amid the macro backdrop as we can see more today in our latest cryptocurrency news.

The shares in BTC-adjacent companies like Microstrategy and Coinbase are dropping as of Tuesday. Coinbase stocks fell by 16% in the aftermath of the reports that the US SEC probed the exchange over listing unregistered securities on the platform. The shares changed hands at $67.07 during the closing bell on Monday and dropped to $62 on Tuesday and then went down to $56.35. After the closing Monday session, Microstrategy stocks were down by 7% in the premarket trades and got down by 9.94% to $239 at the time of writing.

The sharp decline came after the news that Jefferies analyst Brent Thill downgraded the analytics company to “underperform” from “hold.” Microstrategy holds 129,699 BTC worth $2.7 billion at the current prices with the company continuing to be at a $1 billion unrealized loss of $3.97 billion. This is due to the 2022 crypto crash which saw the leading cryptocurrency drop by 56% of its value since the start of the year.

In a note to the investors, Thill hinted at Tesla that sold 75% of the BTC stash and said at the time that when companies dispose of their crypto holdings, the downbeat coverage is due to their lack of execution on the busienss intelligence amid the tough macro backdrop. The Nasdaq-listed company held Q2 earnings next week with the analyst noting that they expect an update on the management’s intention to continue investing in BTC. Thill also predicated that Microstrategy should report revenue growth of 4% which is more than the average Wall Street estimate of 3%. He added tht he expects adjusted operating margins without the impairment loss of 13.6% versus Street at 15.5%.

The Microstrategy CEO Michael Saylor remained upbeat despite the latest developments and he continued emphasizing that Microstrategy’s commitment to the leading cryptocurrency is only getting bigger and said that “Bitcoin never misses earnings.” In the meantime, Bitcoin continued the downwards trend and dropped another 4.90% in the past day to the price of $20,891.

As earlier reported, The investment fund led by Cathie Wood, Ark Invest dumped $75 million or 1.4 million shares of Coinbase Global according to the company’s daily trade information newsletter. The sale is spread out across the company’s managed exchange-traded funds, such as Next Generation Internet, Fintech Innovation, and Ark Innovation. Coinbase stock closed Tuesday down 21.08% which means that the company disposed of $75 million worth of shares in San Francisco-based company.