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Bitcoin treasury institution Strategy announced connected Friday that it volition repurchase $1.5 cardinal successful 0% convertible notes, owed successful 2029, retiring astir fractional of the 2029 convertible enactment tranche’s full outstanding debt.
Strategy entered into “privately negotiated transactions” with a information of its 0% elder convertible enactment holders connected Thursday, agreeing to repurchase the indebtedness for an estimated $1.38 billion, according to the company’s Securities and Exchange Commission (SEC) filing.
The transaction is acceptable to settee connected Tuesday of the week pursuing the work of this article, the institution said, adding that the last repurchase magnitude could “vary” from the estimated magnitude based connected marketplace conditions. The institution added:
“Strategy expects to money the repurchases with disposable currency reserves, proceeds from income of securities nether its at-the-market offering program, and/or proceeds from the merchantability of bitcoin.”
Strategy's SEC filing documenting the 2029 convertible enactment repurchase. Source: Strategy
The determination follows comments made by Strategy co-founder Michael Saylor successful May 2026, signaling that the institution could sell a information of its Bitcoin holdings to money dividend payments, and earlier comments successful February that the institution plans to equitize its indebtedness successful the coming years.
Related: Strategy’s Bitcoin motor faces $28B STRC ceiling: Delphi Digital
Strategy plans to swap its convertible indebtedness for equity implicit the adjacent 3-6 years
Strategy plans connected equitizing its convertible debt implicit the adjacent 3-6 years, gradually turning holders of its recognition instruments into equity holders.
This would trim the indebtedness load connected the company, but would besides dilute existing stockholder worth by adding caller equity shares.
Source: Michael Saylor
Strategy has astir $8.2 cardinal successful full outstanding indebtedness astatine the clip of publication, according to data from the company, and has funded its BTC buys successful 2026 chiefly done its Stretch Perpetual Preferred Stock (STRC).
On Thursday, STRC deed $1.5 cardinal successful regular trading volume, mounting a caller grounds for the equity instrument, and signaling beardown capitalist interest.
The company’s most caller Bitcoin purchase occurred connected Monday, erstwhile it bought 535 Bitcoin for $43 million, bringing its full Bitcoin holdings to 818,869 coins, valued astatine astir $64 billion, utilizing BTC’s spot marketplace terms astatine the clip of publication.
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