Crypto stocks stumble in after-hours trading despite mixed earnings
Four businesses with exposure to the crypto industry experienced some volatility on Thursday, with investors balking at mixed Q2 earnings
Shutterstock, modified by Blockworks
As the US earnings season enters its third week, after-hours trading of four prominent crypto-related stocks is beginning to shed light on broader market sentiment toward the sector.
Jack Dorsey’s Square (SQ), known for its exposure to bitcoin (BTC) through its Cash App, experienced a 5.5% drop in after-hours Thursday, shortly after posting its Q2 earnings.
The company reported substantial growth in its bitcoin sales, which rose to $2.39 billion during Q2, a year-over-year jump of 34%, Blockworks previously reported.
Despite its crypto growth, investors have balked, sending its stock tumbling to $69 per share. SQ is down 9% since July 31 but remains elevated year-to-date (YTD) at roughly 13.5%.
Coinbase (COIN), one of the world’s largest cryptocurrency exchanges, saw a minor dip of 1% in its share price following the closing bell to $89.95. Coinbase’s Q2 earnings beat analyst expectations, posting a loss per share of 42 cents against the predicted 76 cents.
Still, transaction revenue for the company fell 12.8% quarter-over-quarter to $362 million. COIN remains 164% higher in 2023.
MicroStrategy (MSTR) suffered a 4.3% drop to $389 in Thursday’s trade, with after-hours trading recovering half a percent, despite a 10% drop over the previous five days.
Q2 2023 revenues reached $120 million, down 1.4% year-over-year. In Q2, the firm, headed by bitcoin bull Michael Saylor, added 12,333 BTC, pushing total holdings above 150,000 BTC. Year-to-date, MSTR has seen a 169% increase.
Stock trading platform Robinhood (HOOD) saw its crypto trading revenue decline by 18% to $31 million in Q2, 2023. HOOD was hardest hit on the day, slipping 7.2% and a further 0.5% in after-hours to $11.48.
It comes despite the company reaching GAAP profitability for the first time since its IPO. HOOD remains in the green this year, up more than 40%.
The focus now shifts to those crypto firms yet to report second-quarter earnings. Many of the industry’s major mining companies are expected to post earnings during the second half of this month.
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