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MicroStrategy may pause Bitcoin purchases in January due to a rumored blackout period on issuing shares or convertible debt.
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Speculations link the blackout to insider trading rules or NASDAQ 100 index inclusion.
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The company holds $46.02 billion in Bitcoin, with MSTR shares up 460% year-to-date.
MicroStrategy may suspend Bitcoin acquisitions due to a potential January blackout period, affecting investors eagerly following its bullish strategy.
MicroStrategy’s Bitcoin Purchase Could Slow Down in Q1 2025
A leading venture capitalist speculated that Executive Chairman Michael Saylor faces restrictions in January that could hinder the issuance of new convertible debt for funding further Bitcoin acquisition. This potential halt could disappoint many MSTR investors who closely track the company’s aggressive Bitcoin purchase strategy.
“Saylor has a blackout period all of January and cannot issue any new converts to buy BTC. Mad lad goes for it through Dec 31, and then alt season,” Vance Spencer wrote on X (formerly Twitter).
Some observers suggest the rumored prohibition might stem from insider trading regulations. While the SEC does not forbid trading by insiders after a fiscal quarter ends, many companies adopt blackout periods to avoid the appearance of impropriety.
These periods often last two weeks to a month and typically end a couple of days after quarterly earnings announcements. Others speculated that the restriction could apply only to “at the market” (ATM) share sales, not convertible debt issuances.
“I think $MSTR blackout periods are overhyped in duration and expected impact. I’m not convinced MicroStrategy will stop buying Bitcoin or stop the ATM for the period from close of the quarter to the release of quarterly report (~40 days). I understand regular 8K filings and press releases satisfy all Fair Disclosure requirements, and they’ve established a norm for doing so in their market activity to date,” another analyst commented.
Another theory links the potential blackout to MicroStrategy’s inclusion in the NASDAQ 100 index on December 23, suggesting that internal committee recommendations may have prompted the pause.
MicroStrategy’s next earnings report is expected between February 3 to 5, 2025. Analysts believe any blackout period could span the entire month of January or begin mid-month on January 14.
“Quarter to date, $MSTR treasury operations delivered a BTC Yield of 46.4%, a net benefit of ~116,940 BTC. At $105K per BTC, that equates to ~$12.28 billion for the quarter,” Michael Saylor shared on X (formerly Twitter).
MicroStrategy currently holds $46.02 billion worth of Bitcoin, sitting on an unrealized profit of over $18.9 billion. The company bought over $3 billion worth of BTC in December alone, at prices over $100,000, demonstrating Michael Saylor’s bullish stance on the largest cryptocurrency.
This rally has propelled the company into the echelon of the top 100 publicly listed firms in the US. The stock was recently added to the prestigious Nasdaq-100, with a potential for inclusion in the S&P 500 next year.
Conclusion
In summary, the rumored blackout period could impact MicroStrategy’s aggressive Bitcoin acquisition strategy significantly. Investors are left anticipating the outcome of these developments as the company navigates its financial choices in early 2025. The future actions are pivotal, particularly as MSTR continues to solidify its position in the crypto market.
