MicroStrategy May Pause Bitcoin Purchases in January Amid Blackout Rumors

• MicroStrategy may face financial constraints in January 2025.
• Rumors of a blackout linked to the NASDAQ 100 index.
• Company maintains optimistic stance on Bitcoin and its profits.

MicroStrategy, one of the most recognized companies for its aggressive Bitcoin acquisition strategy, may face a temporary pause in its purchases of the cryptocurrency in January 2025. According to rumors, the company may be impacted by a blackout period, which would restrict the issuance of shares or convertible debt to finance its acquisitions. This speculation has raised concerns among investors, given the potential impact on the company's approach to cryptocurrencies.

Saylor has a blackout period all of Jan – cannot issue any new converts to buy BTC

Mad lad goes for it through Dec 31 and then alt season

— Vance Spencer (@pythianism) December 17, 2024

Blackout periods are common practice among public companies. These periods are often self-imposed to ensure regulatory compliance or avoid the appearance of misconduct, especially during events like earnings releases. As noted by Vance Spencer, co-founder of Framework Ventures, MicroStrategy could face significant limitations early next year. In a post on the X platform (formerly Twitter), Spencer said:

“Saylor has a blackout period throughout January and cannot issue new conversions to buy BTC. This mad lad lasts until December 31st, and then alt season comes.”

The statement suggests that MicroStrategy CEO Michael Saylor will not be able to issue new convertible debt in January to fund more Bitcoin purchases. The news has raised questions and concerns among investors who have been following the company’s trajectory, particularly regarding its continued commitment to Bitcoin.

While some analysts believe that the blackout period may be related to internal regulations or corporate governance practices, others suggest that it may be a consequence of MicroStrategy's recent inclusion in the NASDAQ 100 index on December 23, 2024. This move may have required internal adjustments and led to the adoption of temporary restrictions.

Another point of debate among experts is whether the possible blackout will affect both the sale of “at-the-market” (ATM) shares and the issuance of convertible debt. Some observers argue that the restriction may be limited to one of these financial mechanisms, which, if confirmed, could mitigate part of the speculated impact.

MicroStrategy is scheduled to release its next financial report between February 3 and 5, 2025. Analysts believe the blackout period could last the entire month of January or begin on January 14, covering the weeks leading up to the earnings announcement. However, the company is known for its regulatory transparency, frequently using press releases and 8-K filings to update the market, which could minimize any perception of uncertainty among investors.

Despite these potential constraints, MicroStrategy continues to demonstrate confidence in Bitcoin. As of December 2024, the company acquired over $3 billion worth of BTC at prices above $100.000 per unit. The company currently holds 439.000 BTC, valued at over $46 billion, with an unrealized profit of $18,9 billion. This commitment highlights Saylor and his team’s bullish view on Bitcoin’s long-term potential as a strategic asset.

Bitcoin’s performance in 2024 has significantly boosted MicroStrategy’s stock, which has seen a 460% increase in value over the year. With this performance, the company has joined the select group of the 100 largest publicly traded companies in the United States. In addition, its inclusion in the NASDAQ 100 index positions MicroStrategy as a strong candidate for the SP 500 index next year.

At the time of publication, the price of Bitcoin was quoted at US$97.951,60 with a drop of 6.2% in the last 24 hours.

While rumors of a blackout have caused some unease, investors remain vigilant about the company’s stance and the influence of Bitcoin on its strategy. The coming month promises to bring more clarity on the impact of this potential pause and the future of MicroStrategy’s approach to cryptocurrencies.