MicroStrategy Pauses Bitcoin Buying Spree Ahead of Earnings Release

MicroStrategy, the fourth-largest owner of bitcoin (BTC), did not buy any new tokens last week, Executive Chairman Michael Saylor announced on X, ending a 12-week string of purchases.

MicroStrategy (Nasdaq: MSTR) didn't buy any bitcoin (BTC) last week, Executive Chairman Michael Saylor said Monday in a post on social media platform X.

The announcement ends a 12-week streak of purchases by the Tysons Corner, Virginia-based company, which has now bought 218,887 bitcoin since Nov. 11, according to Saylor. MicroStrategy now holds 471,107 bitcoin.

While Saylor didn't say why the company held back, a likely reason could be its impending earnings release after the market close on Feb. 5, CoinDesk senior analyst James Van Straten said.

Public companies enter a so-called blackout period for some time before earnings releases to prevent insider trading. During that period, which can last days, weeks or even months, people with financial information about the company are restricted from buying or selling the company's securities.

In MicroStrategy’s case, given that the majority of its balance sheet is bitcoin, this could include trading the cryptocurrency.

Last week, the company announced a preferred share offering of roughly $250 million to purchase even more BTC. Just a few days later, it more than doubled that amount as it sold roughly 7.3 million shares of the series.