Coinbase Global (NASDAQ: COIN) stock slumped in pre-market trading Friday as Bitcoin extended its losing streak to a fourth consecutive session.
Bitcoin, the leading cryptocurrency, plummeted 6.5% to reach $54,450 by 04:01 ET, marking its lowest point since February. The cryptocurrency briefly dipped below $54,000 before a slight recovery.
This downturn had a cascading effect on cryptocurrency-related stocks, particularly in the premarket trading session. MicroStrategy (NASDAQ: MSTR), the largest publicly listed corporate Bitcoin holder, saw its shares plummet by more than 9%.
Bitcoin mining companies were also heavily impacted, with Riot Blockchain (NASDAQ: RIOT) dropping 7.4% and Marathon Digital (NASDAQ: MARA) falling 8.8%.
Other companies in the crypto space also faced sharp declines: CleanSpark (NASDAQ: CLSK) shares fell over 8%, while Cipher Mining (NASDAQ: CIFR) slid 9%.
The notable decrease in Bitcoin’s value followed a significant transaction from Mt. Gox, the defunct cryptocurrency exchange formerly one of the largest in the world.
According to blockchain analytics firm Arkham Intelligence, Mt. Gox transferred 47,228 BTC, valued at around $2.6 billion, from cold storage to a new wallet. This move is part of the exchange’s preparations to reimburse creditors for assets lost during the 2014 hack.
The transfer resulted in over $580 million in liquidations tied to long positions, marking one of the most significant events this year. Investors who held bullish positions on Bitcoin and Ether collectively suffered losses exceeding $380 million.
The broader crypto market also experienced notable declines. Ethereum plunged nearly 10%, Cardano dipped as much as 16%, and XRP tumbled 11.5%.
Coinbase (NASDAQ: COIN) Stock Price Action
As of 05:01 a.m. (Eastern Time) Thursday, COIN stock traded at $209.50, marking a 6.86% decrease compared to the previous trading session.
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