Strategy, a major Bitcoin-focused company, has announced a significant debt reduction plan. The company agreed to repurchase $1.5 billion in convertible notes due in 2029 at an estimated cost of $1.38 billion. This move is part of a broader strategy to manage future liabilities. The company stated it could fund the buyback using cash, proceeds from stock offerings, or even Bitcoin sales.
Strategy moved to reduce its convertible note burden after agreeing to repurchase $1.5 billion in notes due in 2029. This marks a major step in its Strategy Bitcoin debt plan as the firm manages future obligations.
According to a filing, the Bitcoin-focused company expects to spend about $1.38 billion on the repurchase. The notes were originally issued in November 2024 to expand its Bitcoin holdings.
Co-founder Michael Saylor had signaled a shift in February. He said the company planned to “equitize” its convertible notes over the next three to six years.
The company’s balance sheet faced pressure earlier this year after Bitcoin dropped to $62,850. That decline led to significant paper losses in its holdings, which are worth about $65 billion.
The filing stated funding could come from cash, stock offering proceeds, or Bitcoin sales. This was notable as Strategy has historically advocated for a buy-and-hold strategy with Bitcoin.
Recently, Saylor stated the company might sell some Bitcoin to pay a dividend. That comment was linked to its preferred stock product, Stretch (STRC), which pays an 11.5% annual dividend.
After this repurchase, Strategy will still have $1.5 billion in 2029 notes outstanding. It also has about $1 billion in notes that investors can force it to buy back as early as September 2027.
The Strategy Bitcoin debt plan will remain closely watched by investors. The company’s future sale of stock, dividends, and potential asset sales may influence its remaining obligations.
