MicroStrategy Faces Potential Blackout Period in January 2025, Affecting Bitcoin Purchases

• MicroStrategy may enter a blackout period in January 2025, halting Bitcoin purchases.  
• Speculation links blackout to insider trading rules or strategic considerations.  
• Investors could see disruption in MicroStrategy’s regular Bitcoin-buying pattern.

Rumors have emerged suggesting that MicroStrategy (MSTR), the business intelligence firm known for its aggressive Bitcoin (BTC) purchasing strategy, may enter a blackout period in January 2025.

This alleged period would see the company suspend its practice of issuing new shares and convertible bonds to raise funds for buying Bitcoin. While MicroStrategy has not officially confirmed this, the claim has sparked considerable interest among investors and market analysts.

The rumored blackout period was first circulated by a venture capitalist who claimed that MicroStrategy’s Executive Chairman, Michael Saylor, would be prohibited from issuing new convertible debt or selling shares to fund further Bitcoin acquisitions throughout January 2025.

This restriction is said to be self-imposed, and while the reasons behind it remain unclear, the move could be related to regulatory or strategic considerations.

The speculation has confused, with some observers linking the blackout to insider trading rules. While the Securities and Exchange Commission (SEC) doesn’t explicitly prohibit insider trading during certain periods, many companies voluntarily impose a blackout period.

This period typically lasts for two to four weeks, often around earnings announcements, to avoid any potential conflicts of interest or suspicions of trading on non-public information.

MicroStrategy’s ongoing Bitcoin buying program, led by Saylor, has garnered significant attention over the past years. The company has become one of the largest corporate holders of Bitcoin.

Investors have grown accustomed to regularly issuing new shares and bonds to fund these acquisitions, which has impacted both MicroStrategy’s stock and the broader Bitcoin market.

If the rumored blackout period does occur, it could freeze the company’s ability to purchase Bitcoin during January, potentially disrupting its established pattern. This could also affect investor sentiment, especially those who expect regular Bitcoin purchases to continue unabated.

While the exact details remain unclear, some speculate that the blackout could start in early January 2025, with others suggesting that it may begin on January 14. MicroStrategy’s earnings announcement is scheduled for February 3-5, 2025, leading some to believe the blackout may extend until then.