Amidst a “Tougher Macro Background,” Shares of Coinbase and MicroStrategy Fall.

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.

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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

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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.”

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