For the past twelve weeks since November 11, MicroStrategy has consistently purchased Bitcoin, bringing its total holdings to 471,107.
However, this week, they have announced a pause in purchase as they plan to release their earnings report on Wednesday.
Due to their weekly purchases, they have become the fourth-largest holders of Bitcoin and the largest purchaser in the last month. However, they say that the purchase freeze is a way to prevent insider trading.
Microstrategy Bets Big on Bitcoin
Shortly before the 2024 election began in November, MicroStrategy purchased Bitcoin in bulk. According to its executive chairman, Micheal Saylor, it has purchased 218,887 Bitcoins since November 11.
However, on February 3rd, he posted on X (formerly Twitter) that they didn’t sell shares or purchase Bitcoin. He also stated that they held 471,107 Bitcoins valued at about $30.4 billion, with the going rate of $64,511 per Bitcoin. Saylor has given no reason they suspended Bitcoin’s purchases.
According to James Van Straten, a senior analyst on Coindesk, a reason for the purchase freeze is the impending release of MicroStrategy’s earnings report when the market closes on January 5th.
The company has gone into a blackout period to prevent insider trading by prohibiting those with financial information about the company from purchasing or selling its securities.
Microstrategy’s Buying Spree Inspires Other Institutions
Following MicroStrategy’s bold twelve-week incessant Bitcoin purchase, other companies have been looking to Bitcoin as a protection against inflation. While many have not invested as much as MicroStrategy, many have invested several multi-millions into Bitcoin holdings.
As of January 17th, healthcare firm Semler Scientific had invested over $191.9 million, and streaming platform Rumble had announced a strategy that included investing over $20 million in Bitcoin holdings. Meanwhile, a crypto mining company, MARA, had 44,394 Bitcoins as of December 18th.
More governments have been open to creating Bitcoin stockpiles. For example, in the Czech Republic, the national bank board voted to explore alternative asset classes in January without explicitly mentioning Bitcoin.
The US has been more open to the idea, with Trump signing an executive order on January 23rd to create a team to establish regulations and a working Bitcoin reserve.
READ MORE: Thailand SEC Plans to Launch DLT Platforms for Securities Trading