Coinbase and Robinhood lead a $10 billion rout in Crypto Mayhem



(Bloomberg) – Robinhood Markets Inc. and Coinbase Global Inc. suffered another beating on Wednesday as Binance Holdings Ltd. bails out its deal to buy, sending another shock through the shaken crypto industry.

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Shares of Robinhood fell 14%, while Coinbase fell 9.5% to a record low – extending this week’s wipeout to more than a fifth of their market capitalizations. The sell-off in crypto-related stocks wiped out at least $10 billion in value, according to data compiled by Bloomberg.

Binance backed out of a deal to take over FTX that the two companies announced on Tuesday — a deal that was meant to “help cover the liquidity crunch” at Sam Bankman-Fried’s struggling crypto exchange. “The issues are beyond our control or our ability to help,” Binance said in a statement.

Robinhood was seen as a potential target for FTX after people with knowledge of the matter told Bloomberg News in June that FTX was reportedly exploring a possible acquisition of the company. Coinbase’s collapse is a reminder of investor caution towards the crypto industry, as Binance’s failure to bail out FTX highlights the challenges facing its longevity.

Other cryptocurrency-related stocks extended losses on Wednesday as Bitcoin fell 14% to a roughly two-year low amid investor jitters. MicroStrategy Inc. fell 20% to a four-month low and Riot Blockchain Inc. lost 8.1%, while Silvergate Capital Corp. fell 12%. Galaxy Digital Holdings Ltd. disclosed $76.8 million exposure to collapsed exchange and fell 16% to the lowest since October 2020.

(Updates with stock movement throughout, details on Binance’s withdrawal from the deal.)

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