What happened

Bitcoin is officially in a bear market, having fallen roughly 28% from all-time highs reached earlier this month. Falling this far has logically impacted cryptocurrency stocks, including those companies holding bitcoin, mining bitcoin, and providing mining equipment. Here are some movers today as of 2:30 p.m. EST:

While the price of bitcoin is having its effect, it’s possible some of these stocks are being indirectly impacted by the GameStop short squeeze. 

A red arrow points down and goes through the floor with a man looking on.

Image source: Getty Images.

So what

Before we talk about the GameStop effect, let’s handle MicroStrategy’s special case. This company’s stock price is more tied to the price of bitcoin than are the other cryptocurrency stocks here. That’s because it holds 70,784 bitcoin tokens on its balance sheet, worth more than $2.1 billion at the current price of $30,000 per token. As a mid-cap company, this means an outsize portion of MicroStrategy’s value is directly derived from the current market price of bitcoin. As the cryptocurrency goes up and down day by day, so too will MicroStrategy stock.

MicroStrategy holds this much bitcoin because of its new corporate policy. All excess cash is to be held on the balance sheet in bitcoin. It’s a policy CEO Michael Saylor hopes more companies will institute. Therefore, the company is holding a conference called Bitcoin for Corporations on Feb. 3, where Saylor will explain what companies need to consider before