Strategy signaled on Friday that it’s taking major steps to pare down its convertible debt stack, entering into an agreement to repurchase $1.5 billion in notes due in 2029.
The Bitcoin-buying firm said in a filing that it expects to pay roughly $1.38 billion to retire debt that the company took on to expand its crypto cache in November 2024, representing a significant chunk of $8.2 billion borrowed by the company in recent years
Co-founder and Executive Chairman Michael Saylor indicated in February that the company would seek over the next three to six years to “equitize” its convertible notes—which investors can trade for common stock if shares clear a certain threshold. As the company controlling $65 billion worth of Bitcoin increasingly leans on its flagship preferred stock, Stretch (STRC), to expand its Bitcoin holdings, the firm’s efforts to retire a portion of its convertible debt align with a broader deleveraging push. While Strategy’s Bitcoin holdings showed billions of dollars in losses earlier this year—with the digital asset dropping as low as $62,850 in February—the looming obligations of its upcoming maturities tested faith in the company’s long-term sustainability.
Those questions were compounded by regular dividend payments that Strategy has committed to through STRC. The largest corporate holder of Bitcoin’s shares changed hands around $178 shortly after Friday’s opening bell, according to Yahoo Finance. Year-to-date, the firm’s stock price has advanced 18%, though it still trades well below its high of $457 last year.