There are increasing thoughts that MicroStrategy might stop buying Bitcoin (BTC) in January because of a possible blackout period linked to issuing shares or convertible debt.
Blackout periods are usually set by publicly traded companies to follow rules and keep ethical practices. Reports say that Executive Chairman Michael Saylor might have limits that could make it hard for him to issue convertible debt for Bitcoin purchases right now.
Investors are worried about MicroStrategy’s bold approach to investing in Bitcoin. Some analysts think the blackout might be linked to insider trading rules, which usually limit financial activities after the end of fiscal quarters, lasting up to a month after earnings reports. There are different views on whether these restrictions will only apply to “at-the-market” (ATM) share sales and not to convertible debt issuance.
People are also talking about MicroStrategy being added to the NASDAQ 100 index on December 23, which might have led to suggestions for a break. The company will likely release its next earnings report between February 3 and 5, 2025. Analysts think the blackout might last all of January or begin around the middle of the month.
Even with these possible short-term limits, MicroStrategy’s dedication to being open about regulations through regular filings has been recognized. The company has $46.02 billion in Bitcoin and an unrealized profit of over $18.9 billion.
In December, it bought more than $3 billion in BTC, showing its positive view on the cryptocurrency. Bitcoin’s strong performance has greatly increased MicroStrategy’s stock price, with shares rising 460% this year, making the company a possible candidate for the SP 500 index next year.
