MicroStrategy to Repurchase $1.5B Convertible Notes Due 2029, Eyeing Bitcoin Sales
MSTR•MicroStrategy launches a $1.5 billion repurchase of its convertible senior notes due 2029, allocating $1.38 billion to retire the liability originally issued in November 2024. The company plans to fund future debt repurchases and its 11.5% preferred stock dividends through cash reserves, equity issuance and potential Bitcoin sales.
1. Debt Repurchase Plan
MicroStrategy has agreed to repurchase $1.5 billion of its convertible senior notes maturing in 2029, planning to deploy approximately $1.38 billion to retire these obligations. These notes were originally issued in November 2024 to finance large, leveraged Bitcoin acquisitions and carried conversion features tied to the company’s share price. The transaction reduces near-term debt and interest expense while signaling a shift in capital allocation priorities.
2. Funding Strategy and Bitcoin Sales
To support ongoing debt retirements and meet an 11.5% annual dividend on its new preferred stock program Stretch (STRC), MicroStrategy will rely on cash reserves and common stock issuance. The company’s regulatory filings explicitly state that future debt repurchases may also be funded by the sale of Bitcoin holdings. Executive Chairman Michael Saylor indicated that selective Bitcoin sales over time will underwrite dividend obligations without compromising overall treasury strategy.
