Strategy to Repurchase $1.5B of 2029 Convertible Notes
Strategy will repurchase $1.5 billion of 0% senior convertible notes due 2029, retiring about half the tranche in privately negotiated deals estimated at $1.38 billion to settle next Tuesday.
The company announced it will repurchase $1.5 billion of 0% senior convertible notes due in 2029, retiring roughly half of that tranche. Strategy entered into privately negotiated transactions with a portion of note holders and estimated the repurchase cost at about $1.38 billion in a Securities and Exchange Commission filing. The transactions are scheduled to settle next Tuesday, and the final repurchase amount may vary with market conditions.
The SEC filing states: “Strategy expects to fund the repurchases with available cash reserves, proceeds from sales of securities under its at-the-market offering program, and/or proceeds from the sale of bitcoin.” The company did not provide a precise breakdown of those funding sources in the filing.
At the time of the filing, Strategy reported roughly $8.2 billion in total outstanding debt.
In February, co-founder Michael Saylor outlined plans to equitize convertible debt over three to six years, converting holders of convertible instruments into equity holders and increasing the company’s shares outstanding.
Strategy has used its Stretch Perpetual Preferred Stock, or STRC, to finance bitcoin purchases in 2026. Company data showed STRC reached a record daily trading volume of $1.5 billion on Thursday.
On Monday, Strategy purchased 535 bitcoin for about $43 million, bringing its holdings to 818,869 coins, which the company valued at roughly $64 billion based on the spot market price at the time of publication.
The repurchase applies only to the 2029 note tranche and is expected to retire about half of that tranche’s outstanding principal. The filing cautioned that the estimated cost and final participation by note holders could change before settlement.
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