Stocks that offer investors exposure to Bitcoin (CRYPTO: BTC) have experienced a downturn following the apex cryptocurrency’s price drop to levels below $41,000, despite initial enthusiasm surrounding the introduction of spot crypto exchange-traded funds (ETFs) in the United States.
Companies holding significant Bitcoin assets, including MicroStrategy Inc (NASDAQ:MSTR) and Coinbase Inc (NASDAQ:COIN), have seen their stock prices fall over the last month.
These equities provide a way for investors to gain exposure to cryptocurrencies without direct investment in such digital assets. However, with Bitcoin’s value under pressure, the impact has spilled over to related stocks.
Crypto Stocks Take A Hit
Between December 24 and January 24, 2024, MicroStrategy observed a 25% decrease in its stock value, with shares falling to $450.99. On January 10, the Securities and Exchange Commission (SEC) greenlit the introduction of spot Bitcoin ETFs, which led to the debut of nine fresh funds in the marketplace. The company, known for its substantial Bitcoin holdings of 189,150 BTC, presently has a cryptocurrency portfolio valued at $7.5 billion.
(Photo: Benzinga)
During the same time frame, Coinbase, the U.S. cryptocurrency exchange possessing 9,480 BTC in reserves, saw its share price decline by 29% since its initial public offering in 2021. As of the latest report on Wednesday, the shares were trading at $121.34.
(Photo: Benzinga)
Stocks in the mining sector, which usually rally alongside the crypto market, have not been spared.
Riot Platforms (NASDAQ:RIOT), a Bitcoin mining company holding over 7,358 Bitcoin, plummeted over 41% over the past month, with its stock hovering just above $10.
(Photo: Benzinga)
Marathon Digital Holdings Inc. (NASDAQ:MARA), another company that specializes in cryptocurrency mining and has a holding of 13,716 BTC, experienced a 38% decline in its stock price, tumbling from $26 on December 26 to $16 by Wednesday, January 24.
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Bitcoin Struggles To Find Footing
Despite the launch of several Bitcoin ETFs this year, Bitcoin’s price has not found strong footing. Bitcoin is down over 5% since the beginning of the year, 2024.
The trading volume for Bitcoin spot ETFs, including…
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