Crypto-linked equities are selling off hard Friday morning as Bitcoin (CRYPTO:BTC) slips below $64,000 and a bruising Q2 report from Coinbase (NASDAQ:COIN | COIN Price Prediction) drags the group lower. Coinbase stock is down 15% to $139.55, the biggest decliner and the catalyst for today’s move.
Strategy (NASDAQ:MSTR), formerly MicroStrategy, is down 8% to $89.84. Bitmine Immersion Technologies (NYSEAMERICAN:BMNR) shares are off 8% to $16.62, and the iShares Bitcoin Trust (NASDAQ:IBIT) is down 4% to $35.37 as Bitcoin trades down 3% over the past 24 hours to $62,478.40.
Coinbase Q2 Miss Leads the Group Lower
Coinbase posted a Q2 net loss of $359 million, or $1.36 per share, its third straight quarter in the red. The loss was far wider than the roughly $0.23 to $0.44 per-share loss analysts expected, with net revenue falling 17% to $1.15 billion.
Coinbase’s transaction revenue fell 22% to $600 million as spot volumes dried up, and adjusted EBITDA dropped 59% to $208 million. Management pointed to a 25% quarter-over-quarter drop in crypto spot trading volume and multi-year lows in crypto volatility.
A wave of Coinbase price target cuts followed across both bulls and bears. CEO Brian Armstrong stated that Coinbase “is no longer a bet just on the price of Bitcoin,” emphasizing subscriptions, stablecoins, custody, and derivatives.
Strategy’s $8.22B Accounting Loss
Strategy reported a Q2 net loss of $8.22 billion, or $24.45 per diluted share, driven by an $8.32 billion unrealized loss on its bitcoin holdings under fair-value accounting. The company held 846,000 Bitcoin as of June 30 (average cost $75,578 per coin).
The headline loss is largely an accounting artifact tied to fair-value marks on bitcoin holdings. Strategy’s Bitcoin holdings grew 11% in the quarter, and it built a $3.75 billion U.S. dollar reserve (about 2.1 years of preferred dividend and interest coverage).
Executive Chairman Michael Saylor framed the quarter around building “Digital Credit as a new asset class.” CEO Phong Le added that Strategy “reduced our convertible debt by 18% to $6.7 billion” and grew Bitcoin Per Share by 5% during the quarter.
Bitmine and IBIT Follow Crypto Lower
Bitmine has no fresh earnings driving today’s slide. The Tom Lee-backed name is the largest corporate Ethereum treasury company, and its move reflects broad sector weakness with both Bitcoin and Ethereum (CRYPTO:ETH) lower, plus the overhang from Cathie Wood’s ARK Invest trimming its Bitmine stake this week.
The iShares Bitcoin Trust is a spot-bitcoin ETF that tracks Bitcoin’s price directly, so IBIT shares move with the coin. It isn’t leveraged, but single-asset crypto exposure carries concentration and volatility risk that can amplify drawdowns like today’s. Bitcoin is now down 28% year to date, weighing on every fund and treasury vehicle tethered to it.
What to Watch
Prediction markets are already skewed bearish, with Polymarket pricing a 96% probability that Coinbase stock finishes lower today. Traders can watch for whether Bitcoin holds a floor into the weekend and how the analyst community digests the earnings misses from Coinbase and Strategy.
The wider crypto complex has rallied hard this month despite Friday’s pullback. Investors can watch for follow-through selling into the close and whether Coinbase stock stabilizes near the $140 level that prediction markets flag as the most likely July anchor.
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