Cryptocurrency-linked equities suffered steep losses Thursday as Bitcoin plunged to $63,257, falling more than 12% on the day and reaching its lowest level since November 2024. The move deepened pressure on firms with direct exposure to digital assets, particularly miners and those that hold Bitcoin on their balance sheets.
Equity moves
Shares of Strategy - the company formerly known as MicroStrategy - dropped 17% as Bitcoin traded below Strategy's stated average purchase price of $76,000, a development that accelerated selling across the group. Other notable moves included a 18% decline for MARA Holdings and a 13% fall for Riot Platforms. Mining peers also recorded double-digit losses: Bitmine Immersion was down 13%, Cipher Mining fell 10%, CleanSpark dropped 17%, TeraWulf tumbled 14%, and IREN Limited decreased 11%. Crypto exchange Coinbase saw its stock fall about 12% amid the broader market weakening.
Why prices moved
Market participants cited two headline drivers behind the pullback. First, growing concern around valuations in artificial intelligence companies has created broader risk-off sentiment across equities. Second, uncertainty over when the Federal Reserve will implement interest rate cuts has added to volatility in risk assets, including cryptocurrencies and related stocks. Together, those factors have weighed on investor appetite for positions tied to Bitcoin and other digital assets.
Exposure and strategy
The sell-off is particularly consequential for publicly traded firms that increased their cryptocurrency holdings last year. Several of these companies expanded Bitcoin reserves amid a more favorable political tone toward crypto during that period, and some cited Strategy's multi-year accumulation of Bitcoin beginning in 2020 as an influence on their approach. The recent price slide has highlighted how large crypto inventories can amplify share-price moves for companies that rely on asset appreciation as part of their investment thesis.
Market implications
Thursday's declines underscore the sensitivity of crypto-linked equities to swings in the underlying digital-asset market and to shifts in macro risk sentiment. Investors and analysts will likely continue to watch both Bitcoin price action and central bank signaling closely, given their potential to influence the earnings, balance-sheet valuations, and funding dynamics of firms with material crypto exposures.
Summary
Bitcoin's drop to $63,257 and more than 12% intraday decline coincided with sharp falls in mining stocks and companies holding digital assets, with Strategy shares down 17% and several peers off double digits. Market worries about AI valuations and the timing of Fed rate cuts contributed to the rout.
Key points
- Bitcoin fell to $63,257, down over 12% on the day, pressuring crypto-linked stocks.
- Major movers included Strategy (-17%), MARA Holdings (-18%), Riot Platforms (-13%), and Coinbase (-12%), with multiple miners off 10% or more.
- Sectors affected include crypto mining, exchanges, and public companies that hold digital assets on their balance sheets.
Risks and uncertainties
- Continued Bitcoin price declines would further strain companies with large crypto inventories, affecting balance-sheet valuations and investor sentiment.
- Uncertainty over the Federal Reserve's rate cut timeline may keep risk assets, including crypto and related equities, under pressure.
- Valuation concerns in other high-growth areas, such as AI, are contributing to broader market volatility that can reduce liquidity for crypto-linked names.