MicroStrategy (NASDAQ:MSTR), known for its aggressive acquisition strategy Bitcoin (CRYPTO: BTC), could temporarily pause its purchases in January due to an alleged blackout period.
What happened
Speculation about the possible stoppage stems from claims that the company could suspend issuing convertible debt or conducting at-the-market (ATM) stock sales to finance Bitcoin purchases, Protos reported.
These reports have sparked widespread discussion among investors.
Benzinga has reached out to MicroStrategy for more information.
The claim comes from a venture capitalist who suggested that MicroStrategy is entering a blackout period that prohibits the issuance of new convertible debt in January.
This claim has not been confirmed by MicroStrategy or its executives, but has raised questions about the company’s operating procedures and financing strategies.
Some observers believe the alleged blackout period may be linked to the self-imposed restrictions that companies often adopt to ensure compliance with securities regulations.
Although these blackout periods are not required by the U.S. Securities and Exchange Commission, they are typically implemented between the close of a fiscal quarter and the release of earnings reports.
These measures are designed to prevent the misuse of non-public information for commercial advantage.
You can also read: Bitcoin (BTC) navigates a complex 2025 with macroeconomic headwinds
Why is it important
MicroStrategy has regularly observed a consistent pattern of Bitcoin acquisitions, largely funded by convertible debt offerings and ATM stock sales.
The potential suspension of these activities has raised questions about the impact on the company’s Bitcoin buying spree. However, the precise details surrounding this supposed pause remain unclear.
The company is expected to release its earnings report between February 3-5, 2025.
If there is a blackout period, it could coincide with this schedule, as many companies refrain from engaging in significant financial activities in the period leading up to earnings announcements.
Questions have also been raised about whether the alleged restriction applies only to ATM stock sales, convertible debt offerings, or both.
MicroStrategy’s recent inclusion in the NASDAQ 100 index on December 23 could also play a role, as companies often reevaluate their governance and disclosure practices after reaching these milestones.
Ultimately, any decision to enforce a blackout period would be determined by MicroStrategy’s board of directors. This measure would reflect the company’s commitment to regulatory compliance and transparency.
Image: Shutterstock
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