Overview
- Strategy, which disclosed the deal Friday in an 8-K, will repurchase about $1.5 billion of 2029 convertible notes for roughly $1.38 billion in cash, with settlement expected around May 19 and the notes to be cancelled.
- The company said it may use cash, at-the-market stock sales, or proceeds from selling Bitcoin to fund it, which at about $79,000 per coin would equal roughly 17,448 BTC, or about 2% of its 818,869-coin stash.
- After this buyback, around $1.5 billion of the 2029 tranche remains, and the broader put schedule through June 2029 totals about $6.71 billion, a level analysts estimate would equal roughly 84,900 BTC at current prices.
- Strategy continues to add coins through its STRC preferred stock, a variable-rate issue that pays about 11.5% and tends to trade to par before its mid-month ex-dividend date, creating a window the company uses to issue shares and buy Bitcoin.
- The firm warns in its 10-Q that even the perception of BTC sales could move prices, though tools like $2.25 billion in cash, fresh equity, and OTC block trades could reduce exchange impact if it raises funds without selling on open markets.