MicroStrategy Holds Off on Bitcoin Purchases Ahead of Earnings Report
MicroStrategy, the fourth-largest corporate holder of Bitcoin (BTC), did not make any new Bitcoin acquisitions last week, marking the end of a 12-week streak of purchases, according to Executive Chairman Michael Saylor’s announcement on X.
Since November 11, the Virginia-based company has added 218,887 BTC to its holdings, bringing its total to 471,107 BTC. While Saylor didn’t specify the reason for the pause, it’s likely due to the company’s upcoming earnings release, scheduled for after market close on February 5, according to CoinDesk senior analyst James Van Straten.
Public companies typically enter a “blackout period” before earnings announcements, a practice designed to prevent insider trading. During this time, individuals with access to non-public financial information are prohibited from buying or selling company securities, including shares and potentially even cryptocurrencies like Bitcoin, which represents a significant portion of MicroStrategy’s balance sheet.
In addition, MicroStrategy recently announced a preferred share offering of about $250 million, with plans to use the funds for more Bitcoin purchases. Just days later, the company raised the amount to over $500 million by selling approximately 7.3 million shares of the series.
