U.S. Crypto Stocks Sink in Pre-Market Trading as BTC Slumps

• The slump coincides with defunct crypto exchange Mt. Gox moving $2.6 billion worth of BTC to a new wallet prior to commencing creditor repayments.

• Michael Saylor’s software company MicroStrategy, which holds over 210,000 BTC, and bitcoin miner Hut 8 led the declines.

U.S. crypto-adjacent stocks were in the red in pre-market trading on Friday as bitcoin (BTC) crashed to the lowest level since February.

Michael Saylor’s software company MicroStrategy (MSTR), which holds over 210,000 BTC, and bitcoin miner Hut 8 (HUT) were the worst affected, sliding 8.5% and 9.5%, respectively.

Other mining companies, including Marathon Digital (MARA), CleanSpark (CLSK) and Riot Platforms (RIOT), fell between 6%- 7.5%. Cryptocurrency exchange Coinbase (COIN) lost 6.5%.

Bitcoin is hovering around $54,400 as of mid-morning in Europe, a fall of 5.8% in 24 hours. It earlier slumped as low as $53,600, its lowest level since late February.

The decline coincides with defunct crypto exchange Mt. Gox moving $2.6 billion worth of BTC to a new wallet, and saying it was commencing creditor repayments 10 years after it collapsed. Traders seem to have been spooked by the prospect of recipients immediately offloading their coins, creating mass selling pressure.