Bitcoin Giant Strategy Slashes Cash Reserves by 61% to Repurchase $1.5 Billion in Debt
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- Strategy used $1.38 billion (61 % of its cash buffer) to repurchase $1.5 billion of convertible notes, cutting its cash reserve to $871 million.
- Strategy kept its entire Bitcoin stash of 843,738 BTC (≈ $64.7 billion) untouched during the debt buyback.
- Strategy’s common shares jumped 3.7 % to $166 after the announcement, contributing to a 7 % YTD gain despite Bitcoin falling ~12 % to $77,200.
- Myriad traders lowered the odds of Strategy selling Bitcoin this year from 85 % to 71 % after the cash‑drawdown move.
Why it matters: Strategy’s cash‑drawdown reduces its liquidity cushion, pressuring preferred‑stock dividend payouts, while shareholders benefit from a short‑term stock bump; Bitcoin holders see no forced sell‑off, and market odds of a BTC liquidation fall.
