Strategy to Repurchase $1.5B of 2029 Convertible Notes, Eyeing Bitcoin Sales
STRC•Strategy plans to repurchase $1.5 billion of convertible notes due 2029 for roughly $1.38 billion, reducing its $8.2 billion debt pile taken on in November 2024. The firm will tap cash reserves, an at-the-market stock program or Bitcoin sales to fund the buyback and support its 11.5% STRC dividend.
1. Debt Repurchase Plan
Strategy will repurchase $1.5 billion of convertible notes due 2029 for approximately $1.38 billion, trimming its $8.2 billion convertible debt taken on in November 2024 and advancing a three-to-six-year plan to equitize these notes into common stock.
2. Funding Strategy and Bitcoin Sales
The company plans to fund the repurchase using cash reserves, proceeds from its at-the-market common stock offering and potential Bitcoin sales, with prediction markets now assigning a 90% likelihood of sales before year-end, up from 12% a month ago.
3. Dividend and Leverage Impact
Retiring a significant portion of debt reduces interest burdens and dilution risk, while supporting Strategy’s regular 11.5% STRC dividend; the move complements its broader deleveraging push as its STRC market cap has risen to $8.4 billion.
