Crypto Stocks COIN, MSTR, MARA Tumble as Earnings Disappoint

• Coinbase has seen revenues decline 27% quarter-on-quarter this year.
• MicroStrategy’s gross profits are down, but Bitcoin earnings are up.
• Marathon Digital is yet to publish its Q3 2024 earnings, yet the stock still took a hit.

The Q3 2024 earnings reports for some of crypto’s biggest players have been published, and it seems that it’s been a rather challenging year as figures continue to slide.

As a result, Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA) stocks have taken a hit.

Coinbase (COIN)

In its Q3 2024 shareholder letter, Coinbase’s total revenue comes in at $1.2 billion—just below a forecasted $1.26 billion, down from $1.38 billion in Q2 (17%) and $1.58 billion in Q1.

Though Coinbase had an underwhelming performance, it’s not all doom and gloom. In the report, the exchange notes that its layer-2 network, Base, has seen a solid 55% increase in transactions and twice as many new contracts deployed on the network.

With $1.3 billion in 24-hour trading volumes and $2.6 billion in total-value locked (TVL), Base is the most dominant Layer-2 by far.

Despite this, Coinbase (COIN ) stock took a hit following the report’s publication on Wednesday, closing the day with a drop of 3.61% to $211.74 and an additional 4.84% decline to $201.5 in after-hours trading.

MicroStrategy (MSTR)

The world’s largest corporate holder of Bitcoin, MicroStrategy, has seen some mixed results in its Q3 2024 earnings.

One key metric was its 11% increase in BTC holdings, which stood at 252,220 at the end of the quarter. This strategy has yielded a solid year-to-date (YTD) return of 17.8%.

However, the firm did see a 10.3% drop in software revenue year-over-year, and gross dropped to $81.7 million.

In the earning call , MicroStrategy president and CEO Phong Lee outlined an ambitious “21/21” investment strategy:

“From the years 2025 to 2027, the company is targeting to raise $42 billion of capital, comprised of $21 billion of equity capital and $21 billion of fixed income capital, primarily for the purpose of acquiring bitcoin.”

After missing revenue estimates, MicroStrategy’s (MSTR ) stock also took a hit following its earnings report, dropping 1.7% to $247.31 at the end of the day, but it has since gained 0.51% in premarket trading.

Marathon Digital (MARA)

Bitcoin mining firm Marathon Digital, which is yet to publish its Q3 2024 earnings report, appears to have been caught up in a broader lull in blockchain and crypto stock investor confidence.

Perhaps in anticipation of a second quarter in a row of declining revenues and earnings, investors were eager to get out ahead of the report’s publication.

Marathon Digital’s (MARA ) stock took a 3.48% hit, dropping to $18.28, falling a further 0.44% in pre-market trading to $18.20