MicroStrategy to pause Bitcoin purchases in January

A rumor is spreading that MicroStrategy may stop selling stocks and issuing convertible debt in January, cutting off its usual Bitcoin funding sources.

If this happens, it would leave many of its investors, who rely on Michael Saylor’s regular Bitcoin purchases, disappointed. The company’s Bitcoin buying spree has become an expectation, but January might be a dry month.

The claim came from a venture capitalist who reportedly said, “Saylor has a blackout period all of January — cannot issue any new converts to buy BTC.”

Some investors think this rumored pause is tied to insider trading rules. While the SEC doesn’t outright forbid trading by insiders between a quarter’s close and earnings announcements, many companies impose their own blackout periods.

These self-imposed blackouts, lasting two to four weeks, aim to avoid suspicions of insider advantage. As we’ve reported in the past, some people are accusing Saylor of manipulating both the stock and crypto market.

Others believe this isn’t about insider trading at all. Instead, they link it to MicroStrategy’s recent addition to the NASDAQ 100 on December 23. Changes tied to this inclusion may involve restrictions impacting how and when the company can sell shares or issue convertible debt.

Yet another theory focuses on ATM share sales rather than convertible debt. Investors aren’t clear whether the rumored January blackout applies to both funding methods or just one.

There’s also confusion about the timeline. MicroStrategy’s earnings call is expected between February 3 and 5, 2025. Blackout periods often begin 30 days before earnings, which could mean the freeze starts in early January. Another possibility is January 14, but the exact dates remain unclear, per the report.