What Happened: According to Benzinga Pro, MicroStrategy’s stock price took a hit, trading at $1,235.01 after closing at $1,447.99 on Friday, closely mirroring the recent 9.38% decline in Bitcoin (CRYPTO: BTC). The company’s investment strategy, which heavily relies on Bitcoin holdings, is believed to be the cause of this downturn.

Why It Matters: MicroStrategy’s fortunes have been closely tied to Bitcoin since it adopted the cryptocurrency as its primary reserve asset in 2020. This move, a first for a publicly listed company, led to a significant increase in the stock returns, even of the so-called “Bitcoin Development company,” outpacing Bitcoin’s gains.

However, the company’s stock has been showing signs of volatility, moving below its 50-day moving average of $1,542 and trading at $1,492. This downward trend is not unique to MicroStrategy, as other crypto-linked stocks like Coinbase Global, Inc. (NASDAQ:COIN) have also been trading lower amid the Bitcoin weakness.