MicroStrategy’s Bitcoin Holdings Update
MicroStrategy, recognized as the fourth-largest holder of bitcoin (BTC), recently announced that it did not acquire any new bitcoins last week. This information was shared by Executive Chairman Michael Saylor on social media platform X, marking the end of a notable 12-week streak of consistent purchases.
Since November 11, the company, based in Tysons Corner, Virginia, has managed to accumulate a total of 218,887 bitcoins. Currently, MicroStrategy boasts an impressive holding of 471,107 bitcoins, solidifying its status in the cryptocurrency market.
While Saylor did not explicitly state the reason behind the halt in purchases, analysts suggest that a significant factor could be the upcoming earnings release scheduled for after the market closes on February 5. According to James Van Straten, a senior analyst at CoinDesk, public companies often enter a so-called blackout period prior to earnings announcements. This period is designed to prevent insider trading by restricting individuals with access to confidential financial information from buying or selling the company’s securities.
In the case of MicroStrategy, where a substantial portion of its balance sheet is comprised of bitcoin, it is plausible that this blackout could extend to trading in the cryptocurrency itself.
Additionally, last week, MicroStrategy revealed plans for a preferred share offering estimated at around $250 million, specifically aimed at acquiring even more BTC. Just a few days later, the company escalated its efforts by more than doubling that amount, successfully selling approximately 7.3 million shares of the series.
