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Crypto Industry Stocks Plummet Alongside Bitcoin

Bitcoin and cryptocurrencies aren’t the only assets suffering right now.

Companies built around or connected to the crypto market are also in deep water following the crash, including Coinbase and MicroStrategy.

  • MicroStrategy is down 21.61% on the NASDAQ today, in line with Bitcoin’s 21.23% slump over the last 5 days.
  • The software company is the largest corporate holder of Bitcoin, with 129,000 coins on its balance sheet as of April. This collapse alone puts MicroStrategy’s Bitcoin position down $1 billion.
  • It also brings MicroStrategy extremely close to the $21,000 liquidation point on its Bitcoin-backed Silvergate loan. If crossed, it will be forced to deposit more Bitcoin as collateral, which it can do down as low as $3,600.
  • MicroStrategy CEO Michael Saylor remains as bullish as ever about the asset. He’s maintained that his company will never sell its Bitcoin and that it’s destined to hit $1 million someday.
  • Meanwhile, Coinbase – America’s most popular crypto exchange – is down considerably amid the collapse. It’s down 11.24% on the day, and 84% from its all-time high in late 2021.
  • The exchange shows a trend of moving alongside the crypto market. Its Q1 2022 revenue registered less than half of that in Q4 2021. In that same timeframe, its monthly transacting users dropped by over 2 million.
  • Finally, top Bitcoin mining companies Marathon and Riot are down by 8.89% and 8.52% each.
  • Miners have been caught selling tokens they’d hoarded for months following the price pullbacks in recent months. In May alone, they transferred 195,663 coins to exchanges.
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However, Marathon has claimed that the cost of mining 1 Bitcoin only costs roughly $6,250 for them. Therefore, even with the latest collapse, they aren’t mining at a loss.

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