Bitcoin Giant Strategy Moves to Retire $1.5 Billion in Convertible Debt, Says It Could Sell BTC
Strategy is taking major steps to reduce its convertible debt, agreeing to repurchase $1.5 billion in notes due 2029 for about $1.38 billion. This move targets a significant portion of the $8.2 billion the company borrowed in recent years to buy more Bitcoin. Executive Chairman Michael Saylor previously outlined plans to gradually shift convertible debt into equity over the next several years. Strategy, which holds $65 billion in Bitcoin, is aligning debt reduction with solvency efforts, especially as its flagship preferred stock STRC—offering an 11.5% annual dividend—gains popularity. The company will fund the repurchase through cash, stock offerings, or Bitcoin sales, and market sentiment now heavily favors Bitcoin being sold this year to support such moves. Strategy’s stock is up 18% year-to-date but remains well below last year’s peak. The firm has $1.5 billion in 2029 convertible notes remaining and roughly $1 billion in notes callable by investors in 2027. Peer companies like Strive are pursuing similar debt repurchase strategies.
