MicroStrategy May Temporarily Halt Bitcoin Purchases in January
Speculation is rising that MicroStrategy may temporarily halt Bitcoin (BTC) purchases in January due to a rumored blackout period affecting the issuance of shares or convertible debt. Blackout periods, often self-imposed by publicly traded companies, restrict certain financial activities to comply with regulations.
Executive Chairman Michael Saylor reportedly faces restrictions in January that could prevent him from issuing convertible debt for additional Bitcoin purchases. This news has raised concerns among investors following MicroStrategy’s aggressive Bitcoin buying strategy. Analysts speculate the blackout might relate to insider trading regulations, as many companies impose restrictions after fiscal quarter closings, lasting up to a month and ending shortly after earnings announcements.
Some suggest the restrictions may apply only to “at-the-market” (ATM) share sales rather than convertible debt issuance. A theory connecting the potential pause to MicroStrategy’s recent inclusion in the NASDAQ 100 index on December 23 has gained traction, possibly due to internal recommendations.
MicroStrategy is expected to announce its next earnings report between February 3 and 5, 2025. Analysts believe the blackout period could span all of January or begin around mid-month. Some argue that the impact of such a blackout is overstated, noting the company's commitment to regulatory transparency through regular 8K filings and press releases.
Currently, MicroStrategy holds $46.02 billion worth of Bitcoin, with an unrealized profit exceeding $18.9 billion. In December, the company reportedly purchased over $3 billion worth of BTC at prices above $100,000, reflecting its bullish stance on the cryptocurrency.
Bitcoin’s strong performance this year has significantly boosted MicroStrategy’s stock price, with MSTR shares up 460% year-to-date. This surge has positioned the company among the top 100 publicly traded firms in the US. Following its addition to the NASDAQ 100, MicroStrategy is rumored to be a contender for the S&P 500 index next year. Despite potential short-term restrictions, the company’s substantial Bitcoin holdings and strong market performance indicate its confidence in the cryptocurrency’s long-term potential.