Vince Spencer fuels speculation about potential MicroStrategy January Bitcoin freeze
The pause could be related to MicroStrategy’s inclusion in the Nasdaq 100
MicroStrategy’s aggressive bitcoin purchasing strategy, long championed by co-founder Michael Saylor, may face an unexpected pause in January, according to a claim by venture capitalist Vince Spencer.
Spencer, co-founder of crypto-focused Framework Ventures, suggested on social media that MicroStrategy could be forced into a buying freeze due to an impending "blackout period" that would restrict its ability to issue convertible debt or sell stocks — two key funding sources for its bitcoin acquisitions.
Loading...
The unconfirmed claim has sparked significant debate within the cryptocurrency community, with speculation over the exact cause of the potential freeze. Some believe the pause could be related to MicroStrategy’s inclusion in the Nasdaq 100 on December 23, a shift that may impose new restrictions on its financial activities.
Others argue the timing aligns with the company's earnings blackout period, a window typically observed by firms to avoid potential insider trading allegations.
Confusion Over Timing and Scope
Investor theories are mixed on when and how long the freeze could last. Earnings blackouts often begin 30 days before a company’s quarterly financial report, placing the potential start date around early January.
MicroStrategy’s next earnings call is expected between February 3 and 5, 2025, further supporting this timeline. Some analysts, however, believe January 14 could be the trigger date.Uncertainty also surrounds which funding mechanisms will be affected.
While some believe the pause would limit only the sale of shares through an at-the-market (ATM) offering, others think it could extend to the issuance of convertible debt, which has previously been a vital tool for financing MicroStrategy’s bitcoin purchases.
MicroStrategy and Michael Saylor have yet to issue an official statement addressing the claims. For now, investors are left to speculate on whether the company's much-watched bitcoin buying spree will face a rare and unwelcome pause in the new year.
Recently, MicroStrategy (MSTR) has entered the top 100 publicly traded U.S. companies, ranking 97th overall. This milestone follows a 12% surge in its stock price to $430 per share, driven by Bitcoin's all-time high.
