Coinbase, MicroStrategy Shares Plunge Amid 'Tougher Macro Backdrop'

Coinbase stock fell almost 16% on Tuesday in the aftermath of reports that the U.S. Securities and Exchange Commission (SEC) is probing the crypto exchange over allegedly listing unregistered securities on its platform.

Coinbase’s shares changed hands at $67.07 at the closing bell on Monday, dropping to $62 on Tuesday premarket and further down to $56.35 by press time.

After closing the Monday session at $265.86, MicroStrategy stock was down almost 7% in premarket trades Tuesday and down 9.94% to $239.42 at the time of writing.

The sharp decline followed the news that Jefferies analyst Brent Thill downgraded the software analytics firm to "Underperform" from "Hold."

MicroStrategy holds 129,699 Bitcoin worth approximately $2.7 billion in current prices, with the firm continuing to be at $1 billion unrealized loss on $3.97 billion.

This is due to the 2022 crypto crash that saw the leading cryptocurrency shed 56% of its value since the start of the year.

'Lack of execution' from MicroStrategy

In a note to investors, Thill also hinted at Tesla, which last week sold 75% of its Bitcoin stash, saying that at a time when companies dispose of their crypto holdings, “the downbeat coverage is due to MicroStrategy’s lack of execution on its business intelligence amid a tougher macro backdrop.”

The Nasdaq-listed company is holding its Q2 earnings next week, with the analyst noting that they "expect an update on management's intent to continue to invest in Bitcoin."

Thill also predicts that MicroStrategy should report revenue growth of 4%, which is more than the average Wall Street estimate of 3%. He also added that he expects adjusted operating margins, excluding impairment losses, of 13.6% versus Street at 15.5%; and negative billings growth of -6% versusStreet at 6%.

MicroStrategy CEO Michael Saylor, however, remained upbeat despite the latest developments surrounding the company.

An ardent Bitcoin supporter, he has repeatedly emphasized MicroStrategy’s commitment to the leading cryptocurrency, and today he took to Twitter again to declare that “Bitcoin never misses earnings.”

Bitcoin has meanwhile continued its downward trend, dropping another 4.90% over the past 24 hours to the current price of $20,891, per CoinMarketCap.