COIN and MSTR in Bearish Territory After Q2 Earnings Shock

Crypto stocks are facing a critical week after Coinbase and Strategy reported steep second-quarter losses. The companies' results pushed COIN and MSTR lower as investors reassessed near-term risk across crypto-linked equities.

Strategy posted a net loss of $8.22 billion for the quarter, mainly due to an $8.33 billion unrealized decline on its Bitcoin holdings. Coinbase reported a loss per share of $1.36 and a net loss of $359.5 million. Revenue came in at $1.2 billion, below expectations near $1.3 billion.

The companies' technical setups are bearish. COIN stock fell 10% on July 31 and closed at $146. Trading volume increased during the decline, showing heavier selling pressure. A continuation of that pressure could bring the June 26 low near $139 into focus.