Rumor has it that MicroStrategy may stop selling stock and issuing convertible debt in January, cutting off Bitcoin’s usual funding sources.
If this happens, it will leave many investors who have relied on Michael Saylor’s regular Bitcoin purchases feeling disappointed. The company’s Bitcoin buying spree has become a predictable one, but January could be a dry month.
The claim came from a venture capitalist who reportedly said: “Saylor has a lock-up period throughout January – he can’t issue any new converts to buy Bitcoin.”
Some investors believe the rumored halt is related to insider trading rules. While the SEC doesn’t completely ban insider trading between the quarter’s close and earnings announcements, many companies have their own blackout periods.
The self-imposed blackouts, which last between two and four weeks, are intended to avoid suspicions of insider gains. As previously mentioned, some people have accused Saylor of manipulating the stock and crypto markets.
Others believe this isn’t about insider trading at all. Instead, they link it to MicroStrategy’s recent addition to the NASDAQ 100 index on December 23. Changes related to that listing may include restrictions that affect how and when the company can sell shares or issue convertible debt.
Another theory focuses on ATM stock sales rather than convertible debt. It’s unclear to investors whether the January blackout applies to both financing methods or just one.
There’s also confusion over the timeline. MicroStrategy’s earnings call is expected to take place between February 3 and 5, 2025. Blackout periods often begin 30 days before earnings, which could mean the freeze begins in early January. Another possibility is January 14, but the exact dates are still unclear, according to the report.