Overview
- Strategy agreed to repurchase $1.5 billion of its 2029 convertible notes for about $1.38 billion, roughly 8% below face value, with the repurchased debt to be canceled after settlement.
- The company said it may use cash on hand, proceeds from an at-the-market common stock program, or the sale of Bitcoin to fund the transaction.
- Executives framed the move as an opening step in a multi‑year effort to reduce an $8.2 billion convertible debt load by swapping debt for equity over time.
- Strategy continues to raise money through its STRC preferred stock, which pays about an 11.5% annual dividend and has funded recent Bitcoin purchases while adding ongoing cash obligations.
- The firm holds about 818,869 BTC valued near $65 billion, and Michael Saylor has outlined a plan that targets roughly 2.3% annual Bitcoin appreciation and allows limited coin sales for items like dividends.