Bitcoin Giant Strategy Moves to Retire $1.5 Billion in Convertible Debt, Says It Could Sell BTC
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Strategy entered an agreement to repurchase $1.5 billion of its 2029 convertible senior notes for an estimated $1.38 billion.
- Strategy will fund the repurchase with cash reserves, proceeds from its at‑the‑market common stock offering, and/or Bitcoin sales, while its stock is up 18% YTD but still below its $457 peak and its Bitcoin holdings have lost billions after the price fell to $62,850.
- Michael Saylor said the firm may sell Bitcoin to fund a dividend and signal market confidence, referencing the 11.5% annual dividend on its preferred stock (STRC).
- Myriad traders now assign a 90% probability that Strategy will sell Bitcoin before year‑end, up from 12% a month earlier.
- STRC offers an 11.5% annual dividend and has a market cap of $8.4 billion, driving demand for the preferred stock.
Why it matters: Shareholders gain a clearer path to equity as Strategy reduces $1.38 billion of debt, while a Bitcoin sale will provide cash for its 11.5% dividend, and the debt cut improves the firm’s leverage profile.
Ask SkimNews
