Crypto crash course: How plunging bitcoin prices shake companies
LONDON, Dec 28 — The year-end plunge in cryptocurrencies has rattled companies that had bet heavily on bitcoin, sending share prices tumbling and reviving fears of a bubble.
Below AFP explains what happens to these bitcoin-buying firms when prices drop.
Why accumulate bitcoin?
Bitcoin surged this year, reaching a record above US$126,000 (about RM508,608) in October.
Companies began buying and holding bitcoin to diversify their cash reserves, protect against inflation or attract investors chasing high returns.
Some were already linked to the cryptocurrency, such as exchanges or “mining” firms that use powerful computers to earn bitcoins as rewards.
Others from unrelated industries also started…
