Market turmoil from Trump tariffs has lowered MicroStrategy’s stock MSTR by 5.85%. The question is whether the stock will remain a proxy for Bitcoin or fall like most stock prices.
MicroStrategy, the largest corporate holder of Bitcoin (BTC), is down 5.85% in pre-market trading on the heels of a large crypto downturn. Pre-market trading offers insights into market sentiment ahead of official hours.
Crypto market chaos
On Saturday, Feb. 1, the White House put tariffs of 25% on Mexico and Canada and a 10% tariff on China. As a rebuttal to the tariffs imposed, Canada imposed a 25% tariff on U.S. products. This trade war has given rise to short-term inflations, according to analysts at Singapore-based crypto trading firm QCP Capital.
However, on Feb. 3, CoinShares reported that digital asset investment products had inflows of $527 million, although this had mostly fluctuated on news headlines and general market concerns, including the news about DeepSeek.
MSTR stocks
New filings show MicroStrategy holds over 471,107 BTC, regularly buying more BTC. This technique links the company’s stock performance to BTC’s price. “MicroStrategy’s business is unique in its dual focus: traditional business intelligence (BI) software and Bitcoin investment,” say Oliver Rodzianko, an analyst on Seeking Alpha.
In well-regulated markets like stock exchanges, MSTR provides a way for traditional investors to gain BTC’s price exposure without actually owning the asset.
According to market research platform TipRanks, MSTR is in buy now territory. The average 12-month price target is $557.50, a 66.52% upside over the current price.
Bullish optimism was last observed on Jan. 29, when MSTR outperformed big tech giants like Meta, Netflix, and Nvidia on the Nasdaq 100 YTD list.
