- The transaction is expected to settle shortly, though the final amount may vary depending on market conditions.
- It aligns with Michael Saylor’s earlier comments about selling some Bitcoin and gradually converting debt into equity.
Bitcoin treasury company Strategy plans to repurchase 1.5 billion dollars of its 0 percent convertible notes due in 2029. The company will retire about half of the total outstanding amount of this specific note issue.
According to a recent company’s data, Strategy entered into negotiated transactions with some holders of its 0 percent senior convertible notes on Thursday. The company agreed to repurchase the debt for an estimated 1.38 billion dollars.
Strategy expects the transaction to settle on Tuesday following the publication of the announcement. The firm noted that the final repurchase amount may change due to market conditions. The notes carry a zero coupon. Holders can convert them into Strategy shares if they choose to exercise the conversion option.
See Related: MicroStrategy Aims For $786 Million In Bitcoin Investment With Convertible Notes
Strategy Targets 2029 Convertible Notes
Strategy said it plans to fund the repurchases with available cash reserves. It may also use proceeds from sales of securities under its at-the-market share offering program and proceeds from selling some of its Bitcoin holdings.
The move follows comments from co-founder Michael Saylor in May 2026. He indicated that Strategy could sell a portion of its Bitcoin to support dividend payments. He also said earlier this year that the company plans to convert more of its debt into equity over time.
Strategy aims to equitize its convertible debt over the next three to six years. This approach will gradually turn creditors into shareholders and reduce the company’s debt load. At the same time, it will dilute existing shareholders because it will add new shares to the market.
Strategy currently has about 8.2 billion dollars in total outstanding debt. The company has financed its Bitcoin purchases in 2026 mainly through its Stretch Perpetual Preferred Stock, traded under the ticker STRC.
On Thursday, STRC reached 1.5 billion dollars in daily trading volume. This level marked a new record for the instrument and pointed to strong investor interest. Strategy continues to expand its Bitcoin holdings despite the planned note repurchase. On Monday, the company bought 535 Bitcoin for 43 million dollars.
This latest purchase increased its total Bitcoin holdings to 818,869 coins. The stash had a value of about 64 billion dollars at the time of publication, based on the spot Bitcoin price then.
