Crypto-Linked Stocks Return to Earth as Bitcoin, Ripple Stumble

• January 16 2018
• Beth Mellor

Companies that have seen their fortunes -- and share prices -- soar with the crypto-craze are now facing a little bit of a reality check.

Companies that have seen their fortunes -- and share prices -- soar with the crypto-craze are now facing a little bit of a reality check.

As bitcoin slumped as much as 20 percent and ripple tumbled as much as 33 percent, firms that touted their links to the burgeoning blockchain industry, including Riot Blockchain Inc., Overstock.com Inc. and DPW Holdings Inc., have seen their shares tumble in U.S. pre-market trading.

Cryptocurrencies fell today as investors speculated about the prospect of regulatory crackdowns for the decentralized market.

DPW Holdings is the biggest peripheral loser from the slide so far, down 12 percent in pre-market trading. The company’s Coolisys Technologies unit is working on advanced technology power systems for digital mining of cryptocurrencies. Riot Blockchain, which rebranded as a blockchain company in October, fell 8.6 percent while Overstock.com, exposed to the craze through a subsidiary called Medici Ventures, fell 4.4 percent.

Eastman Kodak Co., which saw its shares jump almost 200 percent last week after the company said it’s working with WENN Digital to offer a blockchain-based service for paying photographers, is trading 6 percent lower, while Metropolitan Bank -- the issuing bank for a bitcoin debit card called Shift Card -- is down 4.5 percent.

Other stocks to watch Tuesday include Long Blockchain Corp., the unprofitable iced-tea company formerly known as Long Island Iced Tea Corp., as well as semiconductor stocks Advanced Micro Devices Inc. and Nvidia Corp., which have also benefited from the mania for digital coins.