MSTR, BMNR Stocks Fall Despite New Crypto Buys As Bitcoin Fails To Hold $90K

Robinhood, Coinbase and Gemini shares also took hit after price cuts from analysts at Needham.

• Treasury-focused firms saw limited upside despite announcing additional token purchases.
• Analysts cut price targets across major crypto platforms citing volume risks.
• Wall Street flagged the risk of extended weakness over the coming months.

Crypto-linked equities took a dive on Monday as Bitcoin (BTC) fell below $87,000 after a  brief recovery to $90,000. 

Companies with cryptocurrency on their balance sheets like Strategy (MSTR) and Bitmine Immersion Technologies (BMNR) fell despite announcing new buys to top up their treasuries. Crypto exchanges and Bitcoin miners were also in the red.

The overall cryptocurrency market fell more than 2.2% in the last 24 hours, still holding above the $3 trillion mark. Liquidations across the market were relatively contained at $242 million despite the volatility. Bitcoin’s price fell 2.3% in the last 24 hours to $86,900, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day. Chatter, however, increased to ‘normal’ from ‘low’ levels.

On the equities side, the SPDR S&P 500 ETF Trust (SPY) fell 0.08% after closing the day with a 0.43% loss, the SPDR Dow Jones Industrial Average ETF (DIA) edged 0.03% lower after closing 0.53% in the red, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) was slipped 0.16% after a loss of 0.48% in the previous session. On Stocktwits, retail sentiment around QQQ remained in ‘bullish’ territory over the past day, accompanied by ‘low’ levels of chatter.

DATs Buy More Crypto

Shares of Bitmine Immersion Technologies, backed by Fundstrat’s Tom Lee, moved 0.81% higher during regular trading but fell 0.39% after-hours on Monday. The company announced its total Ethereum (ETH) holdings had reached 4.11 million tokens after adding over 44,000 ETH over the past week. Retail sentiment around BMNR on Stocktwits improved to ‘bearish’ from ‘extremely bearish’ territory over the past day as chatter rose to ‘normal’ from ‘low’ levels.

The response was not as rosy for Michael Saylor-backed Strategy, which announced a modest buy of 1,229 Bitcoin for over $108 million on Monday. MSTR’s stock edged 0.25% lower in after-hours trade, following a dip of 2.15% in regular trading. On Stocktwits, retail sentiment around the company remained in ‘bearish’ territory amid ‘low’ levels of chatter over the past day.

Price Target Cuts Across Crypto Exchanges 

Analysts at Needham on Monday downgraded Gemini (GEMI), Robinhood (HOOD) and Coinbase (COIN) as it lowered its estimates for the entire sector citing anticipated weakness in crypto volumes for the next couple of quarters, as per TheFly.

The firm lowered its price target on GEMI’s stock to $23 from $35 and kept a ‘Buy’ rating on the stock. The Winklevoss twins-led enterprise was the heaviest hit of the three, down 3.85% in regular trading. After hours, the shares were still edging lower, down 0.59%. Retail sentiment around the company on Stocktwits remained in ‘bearish’ territory amid ‘extremely low’ levels of chatter over the past day.

Needham’s price target on Robinhood was cut down to $135 from $145 with a ‘Buy’ rating. “Even if crypto prices are near a bottom, retail volumes typically remain muted until momentum returns,” the firm wrote in its note. HOOD’s stock dipped 0.59% in regular trading and slipped 0.28% after-hours. On Stocktwits, retail sentiment around the company remained in ‘bearish’ territory even as chatter rose to ‘normal’ from ‘low’ levels over the past day. 

COIN’s stock fell 1.32% in regular trading and trended 0.54% lower after-hours following Needham’s price target cut to $290, down from $400, with a ‘Buy’ rating. Retail sentiment around the shares remained in ‘bearish’ territory over the past amid ‘low’ levels of chatter. 

Analysts Are Pricing In A Crypto Winter – Just In Case

Cantor on Monday said that crypto prices could be weak for the next few months, as per TheFly. The firm estimated that if it is indeed a “crypto winter” for Bitcoin, then the market is only 85 days into what is usually a 365-day cycle. "With marginal buyers scared off (why step in so early in cycle), we believe Bitcoin could be weak for the next few months," Cantor wrote. 

It also pointed out that Strategy's breakeven currently sits at a Bitcoin price of $75,000, which is around 17% away from the current price. Should Bitcoin’s price get to $75,000, Strategy not selling will be supportive to the overall crypto market, predicted Cantor. 

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