MicroStrategy to Pause Bitcoin Buying in January?

Rumors have emerged suggesting that MicroStrategy may pause its typical Bitcoin funding strategy in January, potentially halting the sale of shares “at the market” (ATM) or the issuance of new convertible debt.

The claim originated from Vance Spencer, co-founder of venture capital firm Framework Ventures, who posted on X stating: “Saylor has a blackout period all of Jan – cannot issue any new converts to buy BTC.”

Saylor has a blackout period all of Jan – cannot issue any new converts to buy BTC

Mad lad goes for it through Dec 31 and then alt season
— Vance Spencer (@pythianism) December 17, 2024

If the rumor proves true, it could disappoint many MicroStrategy investors who have come to anticipate Saylor’s consistent Bitcoin purchases. While the company’s aggressive Bitcoin acquisition strategy has become a hallmark, January may see a pause in activity.

Blackout Period

A blackout period for publicly traded companies is a set timeframe during which insiders, including executives and employees, are prohibited from trading the company’s securities. These restrictions are often implemented around key events, such as earnings announcements, to prevent the misuse of confidential information and ensure compliance with insider trading regulations.

Following Spencer’s post, several X users expressed confusion and sought clarification, requesting a source to verify the claim. Some online commentators speculated that the rumored restriction on issuing new convertible debt might be tied to regulations aimed at preventing insider trading.

While the U.S. Securities and Exchange Commission (SEC) does not ban trading by insiders between the end of a fiscal quarter and the filing of earnings reports — provided all disclosures are current — many companies choose to implement their own blackout periods as a standard practice in the financial industry.

Blackout periods typically last between two weeks and one month, with most companies lifting the restrictions and allowing insider trading within two days after quarterly earnings reports are made public.

MSTR earnings are to be announced on February 5, 2025 so i assume the blackout period has to do with avoid allegations of 'insider trading' so to speak
— xierra ☾ (@__xierra) December 17, 2024

Some members of the crypto community speculate that the rumored blackout period may not be related to insider trading. Instead, they suggest it could be connected to MicroStrategy’s inclusion in the NASDAQ 100 index on December 23. This development may have triggered changes that affected the company’s ability to sell shares or issue convertible debt.

Another theory circulating among investors is that the rumored blackout period could be related to ATM share sales, rather than the issuance of convertible debt. There is still uncertainty over whether this potential restriction would apply to both methods of funding or only one.

MicroStrategy is scheduled to release its earnings between February 3 and 5, 2025. Some speculate that the company’s blackout period will extend throughout January, while others suggest it could last just 30 days leading up to the earnings call. Another theory is that the blackout period will begin on January 14.

MicroStrategy Continues Bitcoin Acquisition

MicroStrategy has gained global attention for its substantial Bitcoin investment, positioning the company as a key player in the cryptocurrency space. The firm has made headlines for its aggressive strategy of acquiring Bitcoin, amassing a significant amount of the digital asset over the past few years.

MicroStrategy continues to expand its Bitcoin holdings through ongoing purchases, significantly increasing its total holdings. Earlier this week, the company acquired 15,350 BTC for $1.5 billion at $100,386 per BTC. MicroStrategy now holds 439,000 BTC, valued at over $45 billion, which represents roughly 2% of the overall supply.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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