Strategy Plans $1.5 Billion Convertible Notes Buyback as Bitcoin Treasury Expands

Strategy moves to reduce debt with 2029 note repurchase

Bitcoin treasury company Strategy has announced plans to repurchase $1.5 billion worth of its 0% convertible senior notes due in 2029, reducing nearly half of the total outstanding debt tied to that note series.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the company reached agreements through privately negotiated transactions with some noteholders on Thursday. Strategy expects to spend approximately $1.38 billion on the repurchase, though the final amount may change depending on market conditions before settlement next week.

The 2029 convertible notes carry a 0% interest rate, but investors have the option to convert them into company shares instead of cash at maturity.

Strategy may use cash, stock sales or Bitcoin to fund deal

The company said it plans to finance the repurchase using a combination of cash reserves, proceeds from securities sales under its at-the-market program, or potentially Bitcoin sales if needed.

Earlier this year, co-founder Michael Saylor suggested the company may sell a portion of its Bitcoin holdings to support financial obligations, including dividends.

Long-term debt strategy focuses on equity conversion

Strategy has repeatedly stated that it aims to gradually convert debt into equity over the next three to six years, reducing borrowing pressure while increasing shareholder ownership. However, this approach could dilute existing investors through additional stock issuance.

The company currently holds around 818,869 Bitcoin, valued near $64 billion, while total outstanding debt stands at roughly $8.2 billion. Recent funding for Bitcoin purchases has largely come through its Stretch Perpetual Preferred Stock (STRC) program, which recently recorded $1.5 billion in daily trading volume, reflecting strong market demand.