What happened

Shares of MicroStrategy (MSTR 5.53%) declined by 10% Thursday, as the price of Bitcoin (BTC 2.61%) fell. 

So what 

MicroStrategy's stock has become something of a proxy for the price of Bitcoin. The enterprise software company made the cryptocurrency its "primary treasury reserve asset" back in August.

Since that time, MicroStrategy has purchased 91,850 Bitcoins at an average price of roughly $24,403. That $2.2 billion investment has grown to more than $4.5 billion today. 

A declining stock chart.

Image source: Getty Images.

However, MicroStrategy's stock price has pulled back sharply in recent days along with the price of Bitcoin. Tesla CEO Elon Musk's announcement that the electric vehicle leader would no longer accept Bitcoin as payment from its customers accelerated the cryptocurrency's decline earlier this week. 

And today, news broke that Binance, the largest digital asset exchange, is being investigated by the Justice Department and Internal Revenue Service.  

Now what

CEO Michael Saylor indicated in MicroStrategy's recent first-quarter earnings release that it will "acquire and hold additional Bitcoin as we seek to create additional value for shareholders." 

With its fate now tied to the success of Bitcoin, MicroStrategy's share price will likely continue to mimic the cryptocurrency's volatile price movements.