By Mackenzie Tatananni
MicroStrategy, Coinbase, and other cryptocurrency stocks fell before bouncing back on Monday after President Donald Trump announced sweeping tariffs on imports from China, Canada, and Mexico.
MicroStrategy, the largest corporate holder of Bitcoin, fell sharply in premarket trading before paring some of those losses. The stock was down 0.8% on Monday morning. Shares of Robinhood Markets, Coinbase Global, and Mara Holdings fell 1.2%, 2.8%, and 4.5%, respectively.
Bitcoin has reversed its earlier decline and risen 1.1% over the past 24 hours to $98,807, according to CoinDesk.
The market recovered slightly after Trump said he would hold off on implementing 25% tariffs on Mexican imports for a month, giving investors hope that a global trade war might be averted. The president said he was also in talks with Canada Prime Minister Justin Trudeau.
Crypto-related stocks fell earlier in the session amid a broad market selloff that caused the major indexes to open in the red. As of Monday morning, the Crypto Fear and Greed Index was at 44, with anything below 50 representing a fear-based sentiment.
Fears of a global trade war hit the market over the weekend after Trump followed through with his promise to impose tariffs and long-time U.S. allies Canada and Mexico vowed to retaliate. Cryptocurrency, while borderless, often magnifies market volatility.
After seeing single-digit percentage decreases earlier in the session, the S&P 500 and Dow Jones Industrial Average were down 0.6% and 0.1%, respectively. The Nasdaq Composite fell 1%.
Also on Monday, MicroStrategy revealed that it had gone a week without purchasing any Bitcoin for the first time since early November.
In a Form 8-K filed with the Securities and Exchange Commission, the company said it didn't sell any shares of class A common stock under its equity offering program or purchase any Bitcoin during the period between Jan. 27 and Feb. 2, 2025.
The company's latest purchase -- at the end of last month -- was for around 10,107 digital tokens, bringing its total holdings to around 471,107 Bitcoins.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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February 03, 2025 12:04 ET (17:04 GMT)
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