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Foreign Media: MicroStrategy's internal trading control period may cause it to suspend Bitcoin purchases in January next year

Foreign Media: MicroStrategy's internal trading control period may cause it to suspend Bitcoin purchases in January next year

Bitget2024/12/18 10:29

According to Protos, Vance Spencer, co-founder of Framework Ventures, posted on platform X that MicroStrategy (MSTR) may not sell stocks via ATM or issue new convertible bonds to fund Bitcoin purchases in January next year. If what Spencer says is true, it might worry some long-term investors who hold MicroStrategy's stock as they have been expecting the company to purchase Bitcoin every week.

Researchers speculate that the so-called prohibition on issuing new convertible bonds is related to internal trading rules. Although the U.S. Securities and Exchange Commission (SEC) does not prohibit insiders from trading during earnings season and announcement periods (assuming all other disclosures are up-to-date), many companies still set their own blackout period as a Wall Street convention. The blackout period usually lasts two weeks to a month, with most companies allowing internal trades again within two days after quarterly earnings announcements. These self-imposed silent periods help companies avoid suspicions of employees profiting from non-public information.

Others guess that the blackout period has nothing to do with internal trading rules but relates instead to recommendations made by committees after MicroStrategy was included in the NASDAQ 100 index on December 23rd. Regardless, MicroStrategy has regularly scheduled its earnings release for February 3rd-5th in 2025. Some believe that the blackout period will last throughout January or for 30 days before an earnings call; others think it will start on January 14th while some even doubt whether there is any blackout period at all.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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