CAN - Crypto Companies Continue to Drop on Contagion Fear
More than two weeks after FTX started to collapse, the crypto market hasn't come close to recovering. In fact, the risk seems to be rising as investors are questioning if exchange Genesis will survive the current decline and if there could be fallout with parent company Digital Currency Group and sister companies like Grayscale Bitcoin Trust.
The market has pushed shares of Coinbase Global (NASDAQ: COIN) down as much as 10.3% today to its all-time low, while Silvergate Capital (NYSE: SI) is down 6.6%, Hut 8 Mining (NASDAQ: HUT) has fallen 12.9%, and Canaan (NASDAQ: CAN) is down 10.1%. Shares of the stocks are down 9.5%, 5.4%, 9.7%, and 10.1% respectively at 2:45 p.m. ET.
Coinbase and Silvergate are caught up in the market's selling of crypto because they're an exchange and bank, respectively, so they have been bucketed with a business like FTX. And if the market is in fact less active over the next few years, it's likely their businesses will suffer.
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Crypto Companies Continue to Drop on Contagion Fear