PANews reported on December 18 that Framework Ventures co-founder Vance Spencer stated on the X platform that MicroStrategy (MSTR) may not sell shares through an ATM or issue new convertible bonds to fund Bitcoin purchases in January next year. If Spencer's claims are true, this could raise concerns for some long-term investors holding MicroStrategy stock, as they have been anticipating the company to purchase Bitcoin weekly.
Researchers speculate that the rule prohibiting the issuance of new convertible bonds is related to insider trading rules. Although the U.S. Securities and Exchange Commission (SEC) does not prohibit insiders from trading during the earnings season and the earnings announcement period (assuming all other disclosures are up to date), many companies still set their own insider trading blackout periods as a Wall Street practice. Insider trading blackout periods typically last from two weeks to a month, and most companies allow insider trading again within two days after the quarterly earnings announcement. These self-imposed quiet periods help companies avoid suspicion that their employees are profiting from undisclosed information.
Some speculate that the insider trading blackout period is actually unrelated to insider trading rules, but rather related to the committee's recommendations after MicroStrategy is included in the NASDAQ 100 index on December 23. In any case, MicroStrategy has scheduled to announce earnings between February 3 and 5, 2025. Some believe the insider trading blackout period will last all of January or will be for 30 days before the earnings call; others believe it will start on January 14, but some even question whether there is any insider trading blackout period at all.
