High bond yields are reflective of sharply higher interest rates as well as genuine skepticism about the long-term viability of crypto amongst institutional investors, one investor said.

Bonds issued by cryptocurrency exchange Coinbase (COIN), and MicroStrategy (MSTR), a business-intelligence company and investor in bitcoin, have slumped as investor confidence in the industry slid in the wake of FTX’s collapse.

Coinbase’s bond due 2031 has dropped 15% this month to 50 U.S. cents on the dollar, according to data source Finra-Morningstar, sending the yield – which moves in the opposite direction to price – to a record high 13.5%. The decline comes after nearly three months of consolidation and marks an extension of the bearish trend seen early this year. The yield on the company’s bond due in 2026 jumped to 17%.

Bonds tied to MicroStrategy, a business-intelligence company and a bitcoin holder, have taken a similar beating. On Friday, the yield on the company’s 2028 notes, issued last year to finance bitcoin (BTC) accumulation, climbed to 13.35% as the price dropped to a record 72.5 cents on the dollar. MicroStrategy holds about 130,000 BTC worth approximately $2.08 billion on its balance sheet.

The companies’ debt carry a premium of around 1,000 basis points or more than the U.S. 10-year Treasury note yield, as of Friday. In traditional markets, a premium of that level is taken to represent credit stress. The 10-year Treasury was yielding 3.80% at press time. One percentage point is 100 basis points.

“High bond yields are reflective of sharply higher rates but also of genuine skepticism about the long-term viability of crypto amongst institutional investors after the high profile collapses of Terra Luna, Celsius, 3AC, Voyager, BlockFi, and FTX,” Mike Alfred, a value investor and founder of digital assets investment platform Eaglebrook Advisors, said.

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