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

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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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