The strategy (MSTR) may begin selling Bitcoin (BTC) to cover its debt repurchase program, the company said in a statement. filed To the Securities and Exchange Commission (SEC) on Friday.
Strategy reveals plan to repurchase $1.5 billion of senior convertible notes by 2029
The company shared a privately negotiated plan to repurchase approximately $1.5 billion in principal amount of its 0% convertible senior notes due 2029.
Strategy expects to complete the buyback for approximately $1.38 billion in cash, which will allow it to repay part of the debt. The company said it could use a combination of existing cash reserves, proceeds from its at-the-market (ATM) offering program and a potential sale of Bitcoin holdings to finance the repurchase.
Given the strategy’s reputation as a top Bitcoin treasury and CEO Michael Saylor’s long-standing “buy and hold” mantra, the move has caught the attention of the entire ecosystem.
Saylor previously indicated that limited Bitcoin sales could be used strategically to support obligations associated with the company’s financing structure. The statement was specifically regarding dividends linked to its STRC perpetual preferred stock program.
He also indicated that the strategy intends to grow its Bitcoin holdings over time, even if short-term liquidity sometimes requires asset sales.
The settlement of the debt buyback is expected to take place around May 19, after which the repurchased notes will be cancelled. Approximately $1.5 billion in principal amount of the 2029 Convertible Notes will remain outstanding.
The notes were originally issued to help finance Strategy’s aggressive Bitcoin acquisitions, which have turned the company into a leading proxy for institutional Bitcoin exposure.
Despite this, the strategy continues to expand its Bitcoin treasury. The company revealed earlier in the week that it purchased 535 BTC for approximately $80,340 million at an average price of approximately $43 million.
That acquisition brought the strategy’s total bitcoin holdings to 818,869 BTC, acquired at an average price of $75,540 per bitcoin.
The move also follows the strategy’s recent first-quarter earnings reportWhere the company recorded an unrealized loss of $14.46 billion due to volatility in the price of Bitcoin. These losses resulted in an operating loss of $14.47 billion and a net loss of $12.54 billion during the quarter.
MSTR fell more than 5% on Friday following the announcement.
