Major U.S. crypto stocks, including bitcoin stockpiler MicroStrategy and leading exchange Coinbase, experienced significant losses in Tuesday’s trading session. MicroStrategy reported a 5% year-over-year decrease in first-quarter revenue, contributing to a sharp decline in its share price.
MicroStrategy’s shares plummeted by as much as 17% on Tuesday following news of its missed earnings and the downturn in the price of bitcoin. Although the shares recovered slightly, they were still down by 15.8% at $1,086 as of 1:45 p.m. ET. Last month, the company’s shares also experienced a notable decline of up to 16%.
Similarly, fellow U.S. crypto stocks such as Coinbase, Marathon Digital, and Riot Platforms faced losses in midday trading. Coinbase saw a drop of as much as 6%, while Marathon Digital and Riot Platforms experienced declines of 9% and 7%, respectively.
These mining stocks have witnessed fluctuations throughout the year, influenced by changes in bitcoin’s price. CleanSpark, Bitfarms, and Hut 8 also shed value, falling by 9%, 6%, and 5%, respectively.
MicroStrategy’s first-quarter revenue of $115.2 million, representing a 5% decrease year-over-year, contributed to the negative sentiment surrounding the stock. As MicroStrategy’s primary strategy for creating long-term value involves accumulating bitcoin, its shares often act as a proxy for the cryptocurrency’s performance.
Bitcoin itself experienced a 4.5% decline, trading at $60,093 at the time of publication. The downturn in bitcoin’s price has led to corresponding drops in other crypto-related stocks, reflecting the interconnectedness of the cryptocurrency market.
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Source: https://cryptocurrencynews.com/microstrategy-shares-plummet-17-amid-crypto-stock-selloff/
