Strategy, the largest corporate holder of Bitcoin, announced Friday it will repurchase $1.5 billion of its convertible senior notes due in 2029. The company expects to pay roughly $1.38 billion to retire the debt, a significant move to pare down its massive $8.2 billion debt stack.
Co-founder Michael Saylor signaled earlier this year that the firm would seek to “equitize” its convertible notes over the next three to six years. This buyback aligns with a broader deleveraging push as the company increasingly relies on its preferred stock, Stretch (STRC), to fund Bitcoin purchases.
In a regulatory filing, Strategy listed “proceeds from the sale of Bitcoin” as a potential funding source for the repurchase. This marks a notable shift for a company that has long espoused a buy-and-hold philosophy on the cryptocurrency.
Saylor recently told analysts that selling some Bitcoin to fund a dividend would “inoculate the market” and demonstrate the company's flexibility. The remark relates to STRC's 11.5% annual dividend, which has fueled its growth to an $8.4 billion market cap.
After this transaction, $1.5 billion in convertible debt from the 2029 tranche will remain outstanding. Another $1 billion in notes could be put back to the company as early as September 2027.