tl;dr
Speculation is growing that MicroStrategy (MSTR) may halt Bitcoin (BTC) purchases in January due to a rumored blackout period on issuing shares or convertible debt. This potential restriction, speculated to be faced by Executive Chairman Michael Saylor, could impact the company's aggressive Bitcoin ...
Speculation is growing that MicroStrategy (MSTR) may halt Bitcoin (BTC) purchases in January due to a rumored blackout period on issuing shares or convertible debt. This potential restriction, speculated to be faced by Executive Chairman Michael Saylor, could impact the company's aggressive Bitcoin purchase strategy, disappointing investors. The blackout period may stem from insider trading regulations, with varying theories on its duration and impact.
MicroStrategy's next earnings report is expected between February 3 to 5, 2025, and analysts believe any blackout period could span the entire month of January or begin mid-month on January 14. MicroStrategy currently holds $46.02 billion worth of Bitcoin and has seen a significant increase in stock price, reflecting its bullish stance on the cryptocurrency.
A popular venture capitalist claimed that Executive Chairman Michael Saylor faces restrictions in January that could prevent the issuance of new convertible debt for funding further Bitcoin acquisition. However, this could disappoint many MSTR investors who closely follow the company’s aggressive Bitcoin purchase strategy.
Some observers suggested 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. Others speculated that the restriction could apply only to “at the market” (ATM) share sales, not convertible debt issuances.
Another theory linked the potential blackout to MicroStrategy’s inclusion in the NASDAQ 100 index on December 23, suggesting internal committee recommendations may have led to 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.
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 of over $100,000. This shows how extremely bullish Michael Saylor’s company is on the largest cryptocurrency. Bitcoin’s bullish cycle this year has reflected on MicroStrategy’s performance in the stock market. MSTR stock price is up by over 460% year-to-date.
This rally has pushed the company into the list of top 100 publicly listed firms in the US. The stock was recently added to the illusive Nasdaq-100, and it’s potentially in contention for the S&P 500 next year.