Will MicroStrategy Halt Bitcoin Purchases Amid Blackout Period?

Aleksei Dmitry Melnik
By Aleksei Dmitry Melnik Add a Comment
3 Min Read

MicroStrategy (MSTR), renowned for its aggressive Bitcoin (BTC) acquisitions, is now under scrutiny as speculation about an upcoming “blackout period” in January 2025 gains momentum. This period, often marked by a temporary suspension of specific activities for public companies, could influence the firm’s BTC-buying strategy, sparking curiosity and debates among investors.

Will MicroStrategy Halt Bitcoin Purchases Amid Blackout Period? = The Bit Journal

January’s Blackout Period and Its Implications

According to a prominent venture capitalist, MicroStrategy’s Chairman Michael Saylor may face obstacles in issuing new convertible debt this January. Such a development could potentially slow down the company’s ambitious Bitcoin acquisition efforts. On social media platform X, Vance Spencer stated:

“Saylor will be in a blackout period throughout January and won’t be able to issue new convertible debt. But he might wrap this up by late December and be ready for altcoin season.”

Some observers attribute this potential restriction to insider trading regulations, although the U.S. Securities and Exchange Commission (SEC) does not explicitly mandate trading suspensions post-quarter. Companies often enforce these periods to maintain ethical standards.

Duration and Market Impact of the Blackout

Speculations suggest that MicroStrategy’s blackout might only apply to at-the-market (ATM) stock sales rather than halting Bitcoin acquisitions entirely. A market analyst shared their perspective:

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“The impact of MicroStrategy’s blackout periods is overstated. I am not convinced they will completely halt Bitcoin purchases or even pause ATM sales.”

As reported by The Bit Journal, MicroStrategy’s Bitcoin investments have delivered substantial financial gains. The company reportedly acquired $3 billion worth of Bitcoin in December alone, with an average purchase price of $100,000 per BTC—a clear testament to its unwavering confidence in the cryptocurrency. Michael Saylor highlighted this success on social media:

“Our Bitcoin return this quarter stands at 46.4%, equivalent to approximately 116,940 BTC. The total value of our Bitcoin holdings has now reached $46.02 billion.”

A Remarkable Year for MicroStrategy Shares

Bitcoin’s bull market this year has significantly boosted MicroStrategy’s stock performance. MSTR shares have soared over 460% year-to-date, even earning the company a spot on the NASDAQ 100 index. Experts speculate that an entry into the S&P 500 may also be on the horizon, further underscoring the success of MicroStrategy’s Bitcoin-centric strategy.

The Bit Journal will continue to monitor developments around MicroStrategy’s activities and their broader implications for the cryptocurrency market.

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