Cryptocurrency exchange Coinbase (COIN) and Bitcoin (BTC) an investor MicroStrategy (MSTR) bonds issued by FTXAfter the collapse of . , the confidence of investors in the sector decreased.
MicroStrategy and Coinbase’s Losses Increase
data source Finra-MorningstarCoinbase’s 2031 futures bond fell 15% this month to 50 US cents per dollar, according to .
The yield, which moves in the opposite direction of the price, reached a record high of 13.5%. The drop comes after nearly three months of consolidation and marks an extension of the bearish trend seen earlier this year.
The yield on the company’s 2026 bond rose to 17%. Bonds tied to MicroStrategy, which owns Bitcoin, took a similar hit.
On Friday, the company Bitcoin (BTC) The yield on the 2028 bonds it issued last year to finance its savings climbed to 13.35% as the price fell to a record 72.5 cents per dollar.
About $2.08 billion on MicroStrategy’s balance sheet 130,000 BTC holding. Corporate debt carries a premium of about 1,000 basis points or more from the US 10-year Treasury bond yield as of Friday.
In traditional markets, this level of premium represents credit stress. The 10-year Treasury bond was yielding 3.80% at press time. One percentage point is 100 basis points.
A value investor and digital asset investment platform Eaglebrook Advisors“High bond yields are accompanied by sharply rising rates,” said Mike Alfred, founder of Terra Luna, Celsius, 3AC, Voyager, BlockFi and FTX “It reflects a genuine skepticism among institutional investors about the long-term viability of crypto after the collapse of major companies such as
*Not investment advice.
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