MicroStrategy Halts Bitcoin Buying Activity Before Earnings Report
MicroStrategy, a leading corporate Bitcoin holder, paused its Bitcoin purchases last week, marking the end of a 12-week streak of acquisitions. Executive Chairman Michael Saylor revealed the news on X.
Since November 11, MicroStrategy has added 218,887 BTC to its holdings, bringing the total to 471,107 BTC. While Saylor didn’t specify the reason for halting purchases, James Van Straten, senior analyst at CoinDesk, speculates that the move is connected to the company’s forthcoming earnings report, which is set for release after market close on February 5.
Public companies typically enter a “blackout period” ahead of earnings reports to avoid insider trading, which restricts individuals with non-public financial information from trading the company’s securities. Given MicroStrategy’s large Bitcoin holdings, this could extend to cryptocurrency purchases as well.
Alongside the pause, MicroStrategy recently announced a $250 million preferred share offering to raise funds for additional Bitcoin acquisitions. Shortly after, the company decided to double that offering, raising over $500 million through the sale of 7.3 million shares of the series.
