Bitcoin Holds Near September Highs as Proxy Stocks Slide

Bitcoin remained near its September trading range in early October even as major publicly traded companies tied to the cryptocurrency weakened, highlighting the different risks carried by the asset and its corporate proxies.

Bitcoin (BTC) gained about 6% to 7% in September, closing near $84,000 after reaching a monthly high of roughly $87,400. Spot Bitcoin exchange-traded funds also recorded net inflows during the month, adding to demand for direct exposure to the asset.

The companies linked to Bitcoin face additional business risks. Strategy holds Bitcoin on its corporate balance sheet, Coinbase generates part of its revenue from crypto trading activity, and Marathon Digital, Riot Platforms and CleanSpark operate mining businesses affected by Bitcoin prices, energy costs and other expenses.

Strategy announced Sept. 28 that it had acquired 1,665 BTC. The company reported holding 847,666 BTC as of Sept. 27.

The market backdrop turned more difficult in October. Bitcoin fell below $84,000 shortly after midnight UTC on Oct. 7. By 6:35 a.m. ET (10:35 UTC), crypto liquidations over the previous 24 hours had reached $547 million.

Brent crude traded above $101 per barrel during the selloff, while Treasury yields and the dollar rose. The 10-year U.S. Treasury yield was 5.31% on Oct. 5, adding pressure to risk assets alongside the increase in oil prices.

Strategy shares declined 10.98% from their Oct. 2 intraday high to close at $151.47 on Oct. 8, extending the recent gap between Bitcoin and at least some publicly traded vehicles tied to it. Strategy shares have fallen as Bitcoin weakened.