Jonathan Kitchen
Amidst the ebb and flow of financial markets this week, the likes of CleanSpark, Marathon Digital Holdings, Riot Platforms, Kinsale Capital Group, and Coinbase Global saw their fortunes reverse due to a turbulent week for Bitcoin. Meanwhile, non-U.S. banks took advantage of a weaker U.S. dollar to surge forward, embodying a narrative of contrasts in the financial sector.
Financial stocks boasting a market cap surpassing $2 billion commenced the first week of the second quarter in a somber mood, with the Financial Select Sector SPDR ETF struggling, marking a 1.3% descent compared to the broader S&P 500’s 1% decline.
In the wake of a Bitcoin downturn, BTC miners CleanSpark, Marathon Digital Holdings, and Riot Platforms faced the brunt of the storm, recording slides of 26.5%, 18.4%, and 16.7% respectively. On a parallel path of losses, specialty insurance firm Kinsale Capital Group retraced by 14.6%, while Coinbase Global, the monumental U.S.-based crypto exchange, rounded off the quintet of financial casualties with a 9.1% drop. Notably, Coinbase secured a restricted dealer license in Canada amid increasing regulatory scrutiny in the U.S.
On the flip side, Argentine bank Grupo Financiero Galicia emerged as a beacon of hope, cresting with a 7.7% climb, spurred by the U.S. dollar’s depreciation against a set of developed currencies during the week. Bancolombia, a Colombian banking entity, surged ahead with a 6.3% leap, mirroring the upward trajectory of fellow Argentina-based lender Banco Macro that registered an uplift of 6.1%. The trio of winners also included India’s HDFC Bank, notching a 5.4% increase, and NatWest Group, a U.K.-based lender, edging higher by 5.2%.
