MicroStrategy may temporarily suspend issuing convertible bonds to buy bitcoin in January.
ATM-3.89%
BTC-2.35%
MSTR-10.75%
According to Protos reports, it is rumored that MicroStrategy (MSTR) may enter a sales lock-up period in January 2025, during which it will suspend raising funds for the purchase of bitcoin through the issuance of shares and convertible bonds "on the market" (ATM). This information comes from a venture capitalist, who claims that CEO Michael Saylor "will be subject to a sales lock-up period for the entire month of January and will not be able to issue new convertible bonds to buy bitcoin."
While the SEC has not explicitly banned insider trading during the periods leading up to quarter-end closing and financial reporting, many companies voluntarily implement sales lock-up periods of 2 weeks to 1 month to avoid suspicions of insider trading. MicroStrategy plans to release its financial results on February 5, 2025, and will join the Nasdaq 100 index on December 23. There are various versions about the exact length of the blackout period: some indicate that it will last for the entire month, while others predict that it will begin on January 14 and last for 30 days. So far, MicroStrategy has not officially responded to these rumors.