When bitcoin shakes, “crypto” values falter. In the wake of bitcoin falling 30% this year to $32,000, the stock of Coinbase, the world’s second-largest cryptocurrency exchange, is in free fall. The title is down 66% over the same period. Since its IPO nearly a year ago, the company has been at rock bottom and it doesn’t seem to have hit bottom yet. Its course still lost nearly 20% at the close of Wall Street on Monday evening.
Bitcoin mining giants are also in the red. Riot Blockchain, which operates bitcoin mining farms across the United States, has fallen nearly 80% in the past six months. Its competitor, Marathon Digital Holdings is no better, with its stock falling below 12 dollars and a plunge of 46% in the last thirty days. An underperformance relative to the asset it owns and operates as mining revenue declines with the value of bitcoin.