Coinbase’s shares fell by almost 16% on Tuesday after it was revealed that the SEC is investigating the cryptocurrency exchange for allegedly providing unregistered securities on its website.
The price of Coinbase’s shares fluctuated between $67.07 at Monday’s closing bell, $62 in Tuesday’s premarket, and $56.35 as of the time of writing.
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Shares of MicroStrategy decreased more than 7% in premarket trading on Tuesday after closing the previous trading day at $265.86. It was $239.42 at the time of writing, down 9.94 percent.
There was a sharp decline after it was revealed that Brent Thill of Jefferies has downgraded the software analytics business from “Hold” to “Underperform.”
A $1 billion unrealized loss of $3.97 billion is still being experienced by MicroStrategy, which now possesses 129,699 Bitcoin valued at around $2.7 billion at today’s pricing.
This is because the main cryptocurrency has lost 56 percent of its value since the year’s beginning owing to the 2022 crypto meltdown.
Lack of execution by MicroStrategy
In a note to investors, Thill also made a subtle reference to Tesla, which last week sold 75% of its Bitcoin holdings, noting that at a time when businesses are selling off their cryptocurrency holdings, “the negative coverage is due to MicroStrategy’s lack of execution on its business intelligence amid a tougher macro backdrop.”
The Nasdaq-listed business will report its second-quarter earnings the following week, and the analyst has stated that they “anticipate an update on management’s
Additionally, according to Thill, MicroStrategy should announce sales growth of 4%, which is higher than the typical Wall Street projection of 3%. In addition, he stated that he anticipates negative billings growth of -6% over Street’s 6% and adjusted operating margins, excluding impairment losses, of 13.6% versus Street’s 15.5 %.
Michael Saylor, CEO of MicroStrategy, nevertheless, remained optimistic in the face of recent company-related developments.
He has frequently underlined MicroStrategy’s dedication to the top cryptocurrency and is a fervent advocate of Bitcoin. Today, he reiterated this claim on Twitter, saying that “Bitcoin never misses earnings.”