The value of Bitcoin and other cryptocurrencies is taking a beating right now, but it isn’t the only thing that is suffering. Other firms reliant on or linked to the cryptocurrency market are also in deep trouble, including Coinbase and MicroStrategy.
On the NASDAQ, MVIS has tumbled 21.61 percent over the last five days, in line with Bitcoin’s 21.23% decline during that time period.
As of April, the software firm was the world’s largest Bitcoin corporate holder, with 129,000 coins on its balance sheet. MicroStrategy’s Bitcoin position has now lost $1 billion in value, thanks to the cryptocurrency’s recent plunge.
MicroStrategy is also rapidly approaching the $21,000 liquidation point on its Bitcoin-backed Silvergate loan. If that threshold is reached, the lender will be compelled to deposit more Bitcoin as collateral, which it might do all the way down to $3,600.
Michael Saylor, CEO of MicroStrategy, remains very optimistic about the asset. He’s said that his firm will never sell its Bitcoin and that it’ll one day reach $1 million.
Meanwhile, Coinbase, which is the most popular crypto exchange in America, has seen significant losses as a result of the market downturn. On the day, it’s down 11.24 percent and 84% from its all-time high in late 2021.
The exchange’s performance is in sync with that of the cryptocurrency market. Its Q1 2022 revenue was less than half of what it was in Q4 2021. Over the same period, monthly transacting users fell by more than 2 million.
Finally, two top Bitcoin mining companies, Marathon and Riot, have seen their stocks drop by 8.89% and 8.52% each.
Following the price drops of recent months, miners have been caught selling tokens they’d stockpiled for months. They transferred a total of 6,700,000 coins to exchanges during the month of May.
However, Marathon has said that it only costs them around $6,250 to mine 1 Bitcoin. As a result, even with the most recent debacle, they are not mining at a loss.
