As much as 18% drop in cryptocurrency causes MicroStrategy, the largest corporate holder of bitcoin, to decline.

• Shares of MicroStrategy slid on Tuesday after the company purchased even more bitcoin.
• According to a filing with the Securities and Exchange Commission, the company purchased an additional 9,245 bitcoins for approximately $623 million.
• MicroStrategy purchased the shares using the proceeds from a private offering of convertible senior notes and excess cash.

On Tuesday, the price of and the shares of tumbled together, as the company made another purchase of the cryptocurrency.

Earlier, the stock fell as much as 18%, but it has since recovered and is now only 12% lower.

MicroStrategy bought 9,245 bitcoins for $623 million using net proceeds from a private offering and excess cash.

Last week, MicroStrategy purchased 12,000 bitcoins for $822 million, following a debt sale as bitcoin was reaching new highs. As a result, the company now holds a total of 214,246 bitcoins, as announced on Tuesday.

On Tuesday, bitcoin dropped below $63,000, reaching a low of about $10,000 below its record high from last week. As with other cryptocurrencies, MicroStrategy's trading activity tends to mirror that of bitcoin.

The upcoming "halving" event in April, which reduces the bitcoin mining reward, has helped boost the flagship crypto and the stocks linked to its performance.

In 2020, MicroStrategy shifted its focus to Bitcoin development and has primarily traded as a proxy for the crypto's price since then.

MicroStrategy's stock has experienced a 108% increase this year, while bitcoin has only risen 50%. However, both stocks began to decline last week as investors cashed in their profits.