- Rumor says Strategy will suspend January at‑the‑market share sales and convertible notes, pausing bitcoin acquisition strategy temporarily plans.
- Self‑imposed blackout likely aligns with insider‑trading guidelines before February five earnings, limiting executives’ fundraising activities for compliance purposes.
A comment now circulating on social‑media desks claims that Strategy will suspend both at‑the‑market share sales and new convertible‑note issues throughout January 2025. The alleged blackout, if confirmed, would temporarily halt the firm’s regular bitcoin purchases and frustrate traders who track Executive Chairman Michael Saylor’s weekly buys.
Source of the claim
The report began when a venture‑capital investor posted that Saylor “has a blackout period all of January — cannot issue any new converts to buy BTC.” No accompanying documentation has surfaced. Market participants quickly asked for verification and began comparing possible explanations.
Why a blackout could occur
Public companies often impose self‑managed trading blackouts for directors and senior staff between the end of a fiscal quarter and the next earnings release. The practice limits accusations of trading on undisclosed information. Strategy’s fourth‑quarter results are scheduled for 5 February 2025, placing any typical blackout window in mid‑January at the latest.
ETHNews analysts note two ways MicroStrategy has funded previous bitcoin acquisitions:
- At‑the‑market equity sales. The company sells small blocks of common stock into the market, then converts cash proceeds into bitcoin.
- Convertible senior notes. Strategy issues debt that can be exchanged for equity at a later date. Proceeds again buy bitcoin.
A blackout could restrict one or both methods until earnings drop.
Possible triggers
- Quarter‑close procedure. An internal calendar may prohibit new financing activity until after earnings.
- Index inclusion. Strategy joined the Nasdaq 100 on 23 December 2024. Index committees sometimes recommend a quiet period around additions to manage share‑flow volatility.
- Board discretion. The company may simply choose to pause capital‑raising to avoid market noise while finalising year‑end financials.
Investor reaction
MicroStrategy shares trade with high beta to bitcoin. A hiatus in fresh coin purchases could dampen one source of daily bullish sentiment. Some holders who maintain aggressive leverage—nicknamed “Irresponsibly Long MSTR” on social channels—fear reduced near‑term catalysts.
MSTR earnings are to be announced on February 5, 2025 so i assume the blackout period has to do with avoid allegations of ‘insider trading’ so to speak
— xierra ☾ (@__xierra) December 17, 2024
On the other hand, existing shareholders wary of dilution may welcome a pause in equity issuance. Convertible‑note buyers could see improved pricing if new supply stays off the tape.
What remains unclear
- Scope. Does the blackout cover only share sales, or both shares and convertible notes?
- Start date. Some observers point to 1 January; others suggest 14 January.
- Duration. Historic corporate policies often last 30 days or until two business days after earnings—implying an end around 7 February.
Strategy has yet to comment. Until the firm confirms details, ETHNews will monitor filings for any Form 8‑K or shelf‑registration activity. Should January pass without fresh financing, Bitcoin inflows from Strategy would pause for roughly a month, and price impact—if any—would depend on broader market tone.
The post Strategy May Pause Share Sales and Convertible Notes Ahead of February Earnings appeared first on ETHNews.
