Strategy retires $1.5B in convertible debt using cash reserves, shifting from bitcoin buys
Strategy (MSTR), the world's largest corporate bitcoin holder, repurchased $1.5 billion of its 0% convertible senior notes due 2029 for $1.38 billion, using cash reserves. The move, disclosed in a Tuesday filing, reduced outstanding debt from $8.2 billion to $6.7 billion. Executive Chairman Michael Saylor noted on X: "This week we bought bonds, not bitcoin. The ₿itVac is charging." Following the repurchase, cash reserves dropped to about $871 million. This marks a strategic shift from the company's usual bitcoin accumulation focus, as it restructures liabilities tied to its BTC treasury strategy. Strategy holds 843,738 BTC acquired at an average price of $75,700, totaling $63.9 billion. The debt reduction ahead of maturity may lower financial risk and free up future capital for potential bitcoin purchases.
Key facts
- Strategy repurchased $1.5B in 0% convertible notes for $1.38B using cash reserves.
- Outstanding debt reduced from $8.2B to $6.7B after the repurchase.
- Cash reserves fell to ~$871 million following the transaction.
- Michael Saylor signaled a pause in bitcoin buys to focus on debt management.
- Strategy holds 843,738 BTC at an average cost of $75,700 per coin.