Strategy (MSTR), the world’s largest corporate holder of bitcoin, has agreed to repurchase about $1.5 billion of its outstanding 0% Convertible Senior Notes due 2029. The deal comes through privately negotiated transactions with certain noteholders, according to a filing released Friday morning.
The company expects to pay roughly $1.38 billion in cash for the notes. That implies a discount to par value. The 2029 convertible notes were originally issued in November 2024 with a 0% coupon and a $3 billion notional size. They mature on Dec. 2, 2029, and carry a conversion price of $672.40 per share. The current share price sits significantly lower at $183.
Repurchase Price and Funding
The final repurchase price remains subject to adjustment. It will partly depend on the volume-weighted average price of Strategy’s Class A common stock during a designated measurement period. Strategy said it plans to fund the transaction using existing cash reserves, proceeds from share sales, and potentially bitcoin sales. Following settlement, expected around May 19, the repurchased notes will be cancelled. That will leave roughly $1.5 billion of the 2029 notes outstanding.
Market Reaction
MSTR common stock is down 2% in pre-market trading. This aligns with an overnight slump in bitcoin back to $80,400. The company’s moves continue to draw close attention from crypto and traditional investors alike. The repurchase, I think, signals a proactive approach to managing its debt obligations while holding a large bitcoin treasury.
Disclosure and Context
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