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Coinpaprika 2024-12-19 08:29:05

MicroStrategy May Pause Bitcoin Buys Amid Blackout Rumors

Speculation is rising that MicroStrategy may temporarily halt Bitcoin ( BTC ) purchases in January due to a rumored blackout period affecting the issuance of shares or convertible debt. These blackout periods, often self-imposed by publicly traded companies, restrict certain financial activities to comply with regulations or avoid the appearance of impropriety. According to a venture capitalist, Executive Chairman Michael Saylor faces restrictions in January that could prevent him from issuing convertible debt to finance additional Bitcoin purchases. This news has sparked concern among investors who follow MicroStrategy’s aggressive Bitcoin buying strategy. Some analysts speculate the blackout could be linked to insider trading regulations, as many companies impose restrictions following fiscal quarter closings, lasting up to a month and ending shortly after earnings announcements. Others suggest the restrictions may apply only to “at-the-market” (ATM) share sales rather than convertible debt issuance. A theory connecting the potential pause to MicroStrategy’s recent inclusion in the NASDAQ 100 index on December 23 has also gained traction. Internal recommendations may have prompted this move. MicroStrategy is expected to announce its next earnings report between February 3 and 5, 2025. Analysts believe a blackout period could span all of January or begin around mid-month. Some argue that the impact of such a blackout is overstated, as the company has previously demonstrated a commitment to regulatory transparency through regular 8K filings and press releases. Currently, MicroStrategy holds $46.02 billion worth of Bitcoin , with an unrealized profit of over $18.9 billion. In December alone, the company reportedly purchased over $3 billion worth of BTC at prices exceeding $100,000, reflecting its bullish stance on the cryptocurrency. Bitcoin’s strong performance this year has significantly boosted MicroStrategy’s stock price, with MSTR shares up 460% year-to-date . This surge has elevated the company into the top 100 publicly traded firms in the US. Following its addition to the NASDAQ 100 , MicroStrategy is rumored to be a contender for the S&P 500 index next year. Despite potential short-term restrictions, the company’s massive Bitcoin holdings and strong market performance underscore its unwavering faith in the cryptocurrency’s long-term potential.

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