MicroStrategy to Repurchase $1.5 Billion of 2029 Convertible Notes for $1.38 Billion
MSTR•MicroStrategy agreed to repurchase $1.5 billion of its zero‐coupon 2029 convertible notes for an estimated $1.38 billion in cash, or roughly 92 cents on the dollar, with settlement expected around May 19. The company plans to cancel the notes and may fund the buyback via cash reserves, ATM equity sales or bitcoin sales.
1. Buyback Agreement
MicroStrategy agreed on May 14 to repurchase approximately $1.5 billion in principal amount of its zero‐coupon Convertible Senior Notes due December 1, 2029 for an estimated $1.38 billion cash price, representing roughly 92 cents on the dollar. Settlement is scheduled around May 19 and the company will cancel the repurchased notes after closing.
2. Funding Sources
The company may fund the repurchase using its available cash reserves, proceeds from its at‐the‐market Class A stock offering program and/or proceeds from bitcoin sales. The final cash outlay will depend on the daily volume‐weighted average price of MicroStrategy’s Class A common shares during the agreed measurement period.
3. Cancellation and Outstanding Notes
Upon cancellation of the repurchased notes, approximately $1.5 billion in principal of the 2029 notes will remain outstanding, reducing the total from the original $3 billion issued in November 2024. The remaining notes carry a 0% coupon and mature on December 1, 2029.
4. Convertible Note Issuance History
MicroStrategy initially raised $3 billion with the 2029 convertible note offering in November 2024 to support bitcoin purchases and general corporate purposes and completed a separate $2 billion 2030 convertible note offering in February 2025. The current transaction retires roughly half of the 2029 issuance.
