MicroStrategy Doubles Down on Bitcoin with $1.1 Billion Purchase

Business intelligence firm MicroStrategy has once again demonstrated its commitment to Bitcoin, announcing a $1.1 billion purchase of the cryptocurrency. This marks the second such purchase by the company in just one week, further cementing its status as a major player in the digital asset space.

In a recent announcement, MicroStrategy revealed its intention to offer 2.5 million units of its perpetual strike preferred stock, with the proceeds earmarked for "general corporate purposes," including the acquisition of more Bitcoin. The offering, which has a per-share liquidation preference of $100 and pays dividends quarterly, underscores the company's determination to continue accumulating the digital asset.

MicroStrategy's latest Bitcoin purchase comes on the heels of a significant decline in the company's revenues and gross profit margin. In its fiscal third quarter, revenues fell 10.3% year over year to $116.1 million, while the gross profit margin dropped to 70.4% from 79.4% in the same period last year. Despite these challenges, the company reported a 5.1% Bitcoin yield, highlighting the potential of the digital asset as a valuable investment.

MicroStrategy's Bitcoin purchases have been ramping up in recent months, with the company announcing plans to raise $42 billion for its digital asset war chest. The so-called "21/21 Plan" consists of $21 billion of equity and $21 billion of fixed-income securities. In one of its largest-ever purchases, MicroStrategy snapped up 11,000 BTC at an average price of roughly $101,191 in the lead-up to US President Donald Trump's inauguration. The company's biggest BTC buy occurred in November when it acquired 55,000 coins for roughly $5.4 billion.

MicroStrategy's aggressive Bitcoin strategy has not gone unnoticed by other players in the industry. Bitcoin miners have begun to adopt a similar approach, building up their own digital asset stockpiles. According to a report by Digital Mining Solutions and BitcoinMiningStock, a notable shift emerged among Bitcoin miners in 2024, with many opting to retain a larger portion of their mined Bitcoin or refraining from selling altogether.

Other public companies have also added Bitcoin to their balance sheets, following MicroStrategy's lead. This trend suggests that