Cryptocurrency News

Crypto-exposed stocks slide as BTC-bolstered treasury sheds price

Results for this month Violent crypto market downturn Exposure to crypto assets with publicly listed firms appears to have caused significant losses during May, having flowed into stock markets.

Month saw bitcoin (B T c) And other major cryptocurrencies have declined by at least 50%, with BTC dropping from around $ 60,000 on May 10 to surge support to $ 30,000 last week.

MicroStrategy, the largest publicly traded firm by the number of BTCs held in its reserves, saw its share price drop from $ 657 at the end of April to about $ 450 – 31.5% in three weeks on May 21 . However, it appears that MSTR has benefited from Bitcoin’s 50% surge from weekend lows, with a final change to $ 472.45, an increase of nearly 5% over the last 24 hours.

According to the Bitcoin Treasury, MicroStrategy has 92,000 Bitcoins. is appreciated Overall worth about $ 1 billion, despite the crypto crash.

Tesla also took a beating this month, with its shares falling 18%, from $ 709 at the end of April to $ 581 on May 21. TSLA gained 4.4% in the last trade for $ 606.44 on the previous day.

in spite of Tesla suspends bitcoin As an accepted method of payment for its vehicle fleet on 12 May, the firm has not yet announced that it has sold any of the 43,200 BTC from its reserves. The Bitcoin Treasury estimates the value of Tesla’s BTC stash has increased 10% since the automaker Invested $ 1.5 billion in bitcoin.

However, not every firm that has bought bitcoins in recent months is sitting in profit, with Chinese smartphone maker and app developer Meitu Invested $ 49.5 million Close to BTC’s all-time high during March and April. While the firm’s BTC holdings are now worth $ 35.9 million, Meitu has also seen its share price fall 19% from about $ 0.31 to $ 0.26 since the end of April.

Japanese online gaming firm Nexon also announced a $ 100 million BTC purchase on April 28, with the firm’s bitcoin stash now valued at just $ 67 million. Nexon’s stock price fell 29.5% from $ 33.35 at the end of April to $ 23.49 on Tuesday.

However, some analysts believe the sell-off in the tech and crypto sectors could be accelerated by concerns about inflation.

Speaking to Reuters, David Mazza, managing director of the leveraged exchange-traded fund issuer Direxion, Guessed That “high-risk assets, regardless of form” […] Cryptocurrencies, or more speculative growth stocks, are clearly seeing their multiples down as investors begin to reassure what will impact inflation potential. “