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Crypto Stocks Show Why They’re Among the Riskiest of Risk Assets

  • Sector selloff is worse than meme meltdown and SPAC slump
  • Limited exposure strategy comes back to haunt investors
Coinbase Global Debuts Initial Public Offering At Nasdaq MarketSite
Photographer: Michael Nagle/Bloomberg

Crypto curious stock investors are taking little comfort in the rebound in the shares of companies linked to the digital-asset world in the past week, with the sector underperforming just about every other risky corner of the financial markets this year by a wide margin. 

Coinbase Global Inc., touted last year as one of the best ways to gain exposure to crypto when it was first listed on Nasdaq, has tumbled 75% since December. MicroStategy Inc. is down 62%, or more than Bitcoin, for which the software company has been seen a proxy for since Chief Executive Michael Saylor loaded up its balance sheet with the coins. Digital token mining leaders Marathon Digital Holdings Inc. and Riot Blockchain Inc. are down similar amounts, while smaller rivals such as Stronghold Digital Mining Inc. having plunged even more.