MicroStrategy may have to stop buying ever more Bitcoin (BTC) as rumors suggest that the firm is amid a blackout period, which is preventing it from issuing shares or convertible debt.
Publicly traded companies often self-impose these kinds of blackout periods and restrict some financial activities to comply with regulations or avoid attracting regulatory attention. Popular venture capitalist and Framework Ventures founder Vance Spencer claimed that MicroStrategy is going through this kind of limitations right now in a recent X post:
“Saylor has a blackout period all of Jan.”
Spencer claims that MicroStrategy cannot issue any new convertible notes to buy more Bitcoin. He sees it like a switch for liquidity to move from Bitcoin to altcoins:
“[MicroStrategy] goes for it through Dec 31 and then alt season.”
The details
MicroStrategy is a publicly traded business intelligence company founded in 1989 that pivoted to acquire as much Bitcoin as possible in 2020. The company now holds well over 1% of all Bitcoin that will ever exist, and is now well underway to get its hands on 2%.
The company recently acquired its first Bitcoin at over $100,000. According to reports from earlier this week, acquired 15,350 Bitcoin for $1.5 billion at an average price of $100,386 per BTC and achieved a Bitcoin yield of 46.4% quarter to date and 72.4% year to date. The company now holds 439,000 BTC.
The announcement follows a recent Securities and Exchange Commission (SEC) filing by MicroStrategy revealing that the firm acquired about 21,550 BTC for approximately $2.1 billion between Dec. 2 and Dec. 8. The filing reads:
“The Bitcoin purchases were made using proceeds from the issuance and sale of shares under the sales agreement.”
This is true of most of the capital that MicroStrategy used to satisfy its Bitcoin habit. For this reason, news about the imminent absence of the firm’s regular investments into the world’s first cryptocurrency is important in the space if it ends up being confirmed.
