Strategy Announces $1.5B Buyback of Convertible Notes Maturing in 2029
These financial instruments feature a zero-percent interest rate and offer holders the option to convert their holdings into company stock through share redemption.
On Friday, Strategy, the Bitcoin treasury firm, revealed its intention to buy back $1.5 billion worth of convertible notes with 0% interest rates that mature in 2029, effectively eliminating approximately fifty percent of the total debt outstanding from that particular convertible note tranche.
The company disclosed in its Securities and Exchange Commission (SEC) filing that it reached agreements through "privately negotiated transactions" with certain holders of its 0% senior convertible notes on Thursday, committing to repurchase these debt instruments for approximately $1.38 billion.
According to the company's statement, the transaction will be finalized on Tuesday of the week subsequent to this article's release, though Strategy noted that the ultimate repurchase price might "vary" from the projected figure depending on prevailing market conditions. Strategy further stated:
"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."
This development comes after Strategy co-founder Michael Saylor made remarks in May 2026, indicating the company's potential willingness to liquidate part of its Bitcoin reserves to finance dividend distributions, as well as previous statements from February regarding the company's intention to convert its debt into equity during the upcoming years.
Strategy aims to convert its convertible debt into equity within a 3-6 year timeframe
Over the next 3-6 years, Strategy intends to pursue a strategy of equitizing its convertible debt, progressively transforming those who hold its credit instruments into shareholders with equity stakes.
While this approach would decrease the company's overall debt obligations, it would simultaneously result in dilution of current shareholder value through the issuance of additional equity shares.
As of the time this article was published, Strategy carries approximately $8.2 billion in total debt outstanding, based on company data, and has predominantly financed its BTC acquisitions throughout 2026 using its Stretch Perpetual Preferred Stock (STRC).
STRC achieved a milestone on Thursday by reaching $1.5 billion in daily trading volume, establishing a new record for this equity instrument and demonstrating robust demand from investors.
Strategy's latest Bitcoin acquisition took place on Monday, during which the company purchased 535 Bitcoin at a cost of $43 million, elevating its aggregate Bitcoin holdings to 818,869 coins, worth approximately $64 billion based on BTC's spot market price at publication time.