Firm to retire $1.5 billion of 2029 debt for $1.38 billion, citing Bitcoin sales as a funding option amid $8.2 billion debt load.
Strategy has agreed to repurchase $1.5 billion of its 2029 convertible senior notes for approximately $1.38 billion. The move is part of a broader effort to reduce its $8.2 billion debt stack, which the company aims to “equitize” over the next three to six years.
The firm, which holds $65 billion in Bitcoin, previously took on the debt to expand its crypto holdings. Earlier this year, its Bitcoin assets faced valuation losses as BTC dipped to $62,850. The repurchase aligns with a deleveraging strategy, though the company noted Bitcoin sales could fund the transaction.
Co-founder Michael Saylor had signaled plans to convert debt into equity if shares of its preferred stock, Stretch (STRC), reach a predefined threshold. The repurchase marks the first major step in this multi-year plan.