MicroStrategy Suspends Bitcoin Purchases for the Week Before Earnings Announcement

MicroStrategy Halts Bitcoin Purchases Ahead of Earnings Announcement

MicroStrategy, the fourth-largest corporate holder of Bitcoin (BTC), paused its Bitcoin buying spree last week, ending a 12-week run of acquisitions. Executive Chairman Michael Saylor shared the news on X, noting that no new tokens were added during this period.

Since November 11, the company has accumulated 218,887 BTC, bringing its total holdings to 471,107 BTC. While Saylor did not provide a specific reason for the halt, experts suggest that the timing may be linked to the company’s upcoming earnings report, set to be released after market hours on February 5. According to James Van Straten, senior analyst at CoinDesk, it’s common for companies to enter a “blackout period” before earnings reports to prevent insider trading.

During this period, which can vary in length, individuals with access to sensitive financial information are restricted from buying or selling company securities, and in MicroStrategy’s case, this could include Bitcoin, given the cryptocurrency’s dominant role in the company’s financial strategy.

Additionally, MicroStrategy recently revealed a $250 million preferred share offering, aimed at acquiring more Bitcoin. However, shortly thereafter, the company upped the ante, raising the offering to over $500 million by selling approximately 7.3 million shares of the series.