3 Crypto Stocks That Have Crushed This Year

Crypto stocks have been crushed this year due to the global risky environment. Additionally, with governments attempting to regulate the crypto market, we believe fundamentally weak crypto stocks Riot Blockchain (RIOT), Coinbase Global (COIN), and Silvergate Capital (SI) might be best avoided now. Continue reading….



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Cryptocurrency stocks have been hit hard since the start of the year due to the global risky environment. The two major cryptocurrencies, Bitcoin and Ethereum, are down around 50% since the start of the year.

The stock market had a tough first half due to decades-long high inflation, aggressive Fed interest rate hikes and geopolitical tensions. During the cryptocurrency bull run last year, many crypto advocates argued that it was a good store of value due to its scarcity. However, amid global macro uncertainty, crypto stocks have been crushed this year.

The consumer price index in the United States came in below analysts’ expectations after rising 8.5% year-on-year in July. This drove Bitcoin and Ethereum prices higher, on hopes that the Federal Reserve would ease its monetary policy tightening.

However, crypto stocks may remain under pressure in the short term, as revealed by the minutes of the recent Federal Reserve policy meeting. that more rate hikes could be on the way. Policymakers pledged to raise rates as high as necessary to bring prices down.

Against this backdrop, fundamentally weak crypto stocks Riot Blockchain, Inc. (RIOT), Coinbase Global, Inc. (PIECE OF MONEY) and Silvergate Capital Corporation (IF) is perhaps best avoided now.

Riot Blockchain, Inc. (RIOT)

RIOT is involved in cryptocurrency mining and the overall blockchain system through various investments. The company has deployed approximately 8,000 application-specific IC miners at its cryptocurrency mining facility in Oklahoma. Additionally, its subsidiary Tess Inc. is looking to develop a blockchain-based escrow service for wholesale telecom carriers.

RIOT’s adjusted EBITDA loss was $65.17 million for the second fiscal year ended June 30, 2022, compared to a Adjusted EBITDA of $2.38 million. The company’s adjusted loss per share was $0.50, compared to adjusted EPS of $0.03. Additionally, RIOT’s selling, general and administrative expenses increased 205.7% year-over-year to $10.70 million.

Analysts expect RIOT’s EPS for the quarter ending September 30, 2022 to remain negative. It has failed to beat Street EPS estimates in three of the past four quarters. The stock is down 62.6% year-to-date to close the last trading session at $8.35.

RIOT’s weak prospects are reflected in its POWR Rankings. It has an overall F rating, which equates to a strong sell in our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

It has an F rating for stability, feeling and quality and a D for value. It is ranked No. 80 out of 81 stocks in the Technology – Services industry. Click here to see RIOT’s other ratings for growth and momentum.

Coinbase Global, Inc. (PIECE OF MONEY)

COIN offers retailers the premier financial account for the crypto-economy, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technologies and services that enable ecosystem partners to create crypto-based applications and securely accept crypto-asset payments.

On July 21, 2022, the SEC filed first-ever case of insider trading in cryptocurrency after accusing a former COIN employee of informing his brother and friend of classified information.

The SEC also alleges that nine of the 25 cryptocurrencies involved in the insider trading case met the security criteria. Yet COIN did not register them as securities, even though they had all the hallmarks of a definition of security.

COIN net revenue for the fiscal second quarter ended June 30, 2022 decreased 63.7% year-over-year to $808.32 million. Its total operating expenses rose 36.9% year over year to $1.85 billion. The company’s net loss was $1.09 billion, compared to net profit of $1.61 billion a year ago. Additionally, its loss per share was $4.98, compared to EPS of $6.42 a year ago.

For the quarter ending September 30, 2022, COIN EPS is expected to decline 231.5% year-over-year to $2.13. Its revenue for the quarter ending December 31, 2022 is expected to decline 69.6% year-over-year to $759.09 million. The stock has lost 66.1% year-to-date to close the last trading session at $85.44.

COIN’s POWR ratings reflect this bleak outlook. The stock has an overall F rating, which equates to a strong sell in our proprietary rating system.

It has an F rating for Growth, Value, Stability and Sentiment. It is ranked last out of 155 stocks in the F-rated Software app industry. Click here to access COIN’s ratings for Momentum and Quality.

Silvergate Capital Corporation (IF)

SI is a bank holding company for Silvergate Bank, which is a leading bank for innovative fintech and cryptocurrency companies.

SI’s total non-interest revenue decreased 23.6% year-over-year to $9.21 million for the second quarter ended June 30, 2022. Total non-interest expense The company’s interest expense rose 42% year-over-year to $30.55 million. Additionally, its total liabilities grew 26.3% year-over-year to $14.42 billion.

Analysts expect SI’s EPS and revenue to rise 54.5% and 94% year-over-year to $1.36 million and $100.31 million, respectively. The stock has lost 33.9% year-to-date to close last trading session at $97.94.

SI’s weak outlook is reflected in its POWR ratings. The stock has an overall rating of D, which is equivalent to a sell in our proprietary rating system.

It has an F rating for value and stability and a D for quality. It is ranked No. 41 out of 42 stocks in the D rating Pacific Regional Banks industry. Click here to see SI’s other ratings for growth, momentum and sentiment.


RIOT shares were trading at $8.42 per share Thursday morning, up $0.07 (+0.84%). Year-to-date, RIOT is down -62.29%, compared to a -9.60% rise in the benchmark S&P 500 over the same period.


About the Author: Dipanjan Banchur

Ever since he was in elementary school, Dipanjan had been interested in the stock market. This enabled him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets.

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