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Key cryptocurrency stocks, the platforms used to trade digital currencies, plunged Friday in the wake of
Bitcoin sinking below $39,000.
Leading exchange
Coinbase
(ticker: COIN) was down 5.6% in premarket trading,
Riot Blockchain
(RIOT) dropped 8.7%,
Marathon Digital
(MARA) declined 8.18%,
MicroStrategy
(MSTR) fell 8.49%, and
Bit Digital
(BTBT) was down 5.85%. The stocks all followed the world’s largest cryptocurrency lower after Russia’s central bank mooted a potential ban on mining and trading.
The potential restrictions follow moves by China which last year ramped up a crackdown on cryptocurrencies, banning all transactions and mining.
Miners began to gravitate toward Eastern Europe, and Russia has become the third-largest player in Bitcoin mining, behind the U.S. and Kazakhstan.
Markets reacted badly to the statement from the Bank of Russia on Thursday, which warned that the growth of cryptocurrencies threatened retail investors. Generating digital assets could soon be banned along with transactions and trading. Owning Bitcoin looks likely to be allowed.
The contagion spread to Europe where crypto-related stocks also took a hit.
Argo Blockchain
(ARB.U.K.) was down 10.76%,
Arcane Crypto
(ARCANE.Sweden) fell 4.43%,
Northern Data
(NB2.Germany) declined 5.74% and
Online Blockchain
(OBC.U.K.) dropped 7.49%.
Bitcoin
was at $38,445, down 8.5% over the past 24 hours, according to CoinDesk.
Write to Rupert Steiner at rupert.steiner@dowjones.com