Despite Bitcoin’s strong comeback, cryptocurrency-related stocks are finding it difficult to get traction.
On the Bitstamp exchange, Bitcoin recently hit a year-to-date high of $48,234 dollars.
However, publicly traded cryptocurrency companies are finding it difficult to profit from the recent increase. Cryptocurrency mining stocks have taken the worst hit, with their stock prices plummeting by more than half since November.
After a devastating revenue miss that took some shareholders off surprise, the stock of Bitcoin mining business Stronghold Digital dropped by more than 30%. The company’s outlook for the remainder of 2022 is bleak, now that it has recognized that its lofty hashrate goal will not be met owing to operational concerns.
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Despite the fact that the price of Bitcoin briefly went green over the same period, shares of Bit Digital, Hut 8 Mining Corp, and other famous mining businesses have dropped more than 20% since the beginning of the year.
MicroStrategy, a Bitcoin-focused business intelligence startup, has also lost more than 10% of its value year to date. The stock is also down 41% from its all-time high of 860 percent in November. Despite this, the corporation continues to reaffirm its unwavering support for the world’s largest cryptocurrency. It recently received a loan of $205 million to purchase even more Bitcoin. MicroStrategy is the world’s largest cryptocurrency, with a market capitalization of $5.9 billion.
The unfavorable atmosphere in the stock market, according to expert Christopher Brendler, affects the shares of these companies.
Some top tech businesses’ stocks, including Robinhood, Wish, Roku, and Opendoor, are down more than 75% from their 2021 highs. Thereby, demonstrating that the underperformance is not just to crypto equities.
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