MicroStrategy Blackout Rumors Pick Heat, Bitcoin Buying Spree May Hit Speed Bump in January

MicroStrategy may undergo a blackout period in the next year. According to market speculation and reports from December 18th, MicroStrategy (MSTR) may go into a blackout period in January 2025, when it will stop issuing convertible bonds and stocks through “on-site trading” (ATM) in order to raise money for Bitcoin purchases.

The blackout period might come when the price of Bitcoin is predicted to rise by 14.58% and reach $ 119,388 by January 17, 2025.

Why The Blackout Period?

The Blackout period of MicroStrategy comes as a part of insider trading process. Most businesses re-permit insider trading within two days of quarterly earnings announcements, and blackout periods typically last between two weeks and a month.

Companies can avoid suspicions that their employees are abusing confidential information by implementing these self-imposed blackout periods.

It was hypothesized by other researchers that the blackout may not prohibit convertible debt issuances, but rather the sale of ATM shares.

Others, however, surmised that the blackout period is actually related to committee recommendations rather than insider trading regulations, as MicroStrategy’s December 23 inclusion in the NASDAQ 100 index suggests.

MicroStrategy’s Blackout May Hurt Investors

If confirmed, the blackout would destroy a sizable and expanding group of a long MSTR investors who have grown accustomed to Executive Chairman Michael Saylor’s weekly Bitcoin purchases.

According to some impromptu researchers, the purported ban on issuing new convertible debt has something to do with insider trading regulations.

Many businesses self-impose a blackout period as a sort of Wall Street tradition, even though the Securities and Exchange Commission (SEC) does not forbid insider trading between the end of a fiscal quarter and the filing of earnings, provided that all disclosures are otherwise current.

MicroStrategy’s Rise in Bitcoin Holdings

The value of MicroStrategy’s Bitcoin holdings has increased dramatically as the price of the cryptocurrency has surged to previously unheard-of heights.

This increase saw the Bitcoin behemoth climb the ranks to rank among the top 100 US listed companies. On November 20th, the company shot up to the 97th position in the US list of the top 100 listed companies, according to official data.

As of right now, the company has an incredible 439,000 Bitcoin, which are valued at about $47.06 billion on the open market. However, with an average purchase price of $61,694.31, the profit is $20 billion.

The value of MicroStrategy’s original Bitcoin investment strategy has increased by more than 104%, leaving the company with enormous unrealized profits.