Strategy, the corporate bitcoin treasury company, announced it will repurchase $1.5 billion of its 0% convertible notes due in 2029. The buyback, executed through privately negotiated transactions, is expected to cost approximately $1.38 billion.
Settlement is scheduled for next week. The company said it will use available cash, proceeds from its at-the-market stock offering program, and potentially bitcoin sales to fund the repurchase.
This move aligns with co-founder Michael Saylor’s recent comments about equitizing the company’s debt over the next three to six years. Reducing debt lowers financial risk but will dilute existing stockholders as convertible note holders become equity holders.
Strategy currently holds about $8.2 billion in total outstanding debt. Its Stretch Perpetual Preferred Stock (STRC) recently hit $1.5 billion in daily trading volume, signaling strong investor interest. The company also added 535 bitcoin this week for $43 million, bringing its total holdings to 818,869 BTC, worth around $64 billion.