Why Did New York Mellon Plunge 7.15% Amid Bit Digital's Earnings Miss?

On April 21, 2025, New York Mellon's stock price dropped by 7.15% in pre-market trading.

New York Mellon has been actively involved in the institutional trading of Bit Digital, a company engaged in the bitcoin mining business. The bank increased its stake in Bit Digital by 2.4% in the fourth quarter, now owning 287,566 shares worth $843,000. This investment reflects New York Mellon's strategic interest in the digital asset sector, particularly in bitcoin mining and related technologies.

Bit Digital's recent financial performance and market dynamics have also influenced New York Mellon's stock price. The company reported earnings per share of ($0.11) for the quarter, missing the consensus estimate of ($0.04) by ($0.07). This financial underperformance, coupled with the volatile nature of the cryptocurrency market, has likely contributed to the recent decline in New York Mellon's stock price.

Additionally, several brokerages have issued reports on Bit Digital, with HC Wainwright reissuing a “buy” rating and setting a $7.00 price objective. Craig Hallum also started coverage on Bit Digital with a “buy” rating and a $6.00 price target. These positive ratings from analysts may have influenced New York Mellon's decision to increase its stake in Bit Digital, further impacting its stock price.