MicroStrategy's stock faced a significant decline on December 19, 2024, driven by speculations that the company might temporarily halt its Bitcoin purchases. This speculation arose from rumors of a blackout period affecting the issuance of shares or convertible debt, which could restrict MicroStrategy's ability to acquire more Bitcoin. The company's Executive Chairman, Michael Saylor, is reportedly facing a blackout period throughout January, potentially impacting liquidity movements from Bitcoin to altcoins. This development comes amid a broader market reaction to the Federal Reserve's recent rate cuts, which have negatively impacted the crypto market, leading to a sell-off in risk assets like Bitcoin.
The ETF Opportunities Trust T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) saw a notable increase of 14.73% at the close of trading on December 19, 2024, with a slight decline of 0.48% after market hours.