Michael Saylor’s Strategy repurchases $1.5 billion in convertible debt

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Disclosure: The author of this story owns shares in Strategy (MSTR).

Strategy (MSTR), the world’s largest corporate holder of bitcoin , repurchased $1.5 billion of its 0% convertible senior notes due 2029 last week for $1.38 billion, opting to reduce debt rather than add to its bitcoin treasury, according to a filing released Tuesday.

The company funded the repurchase using cash reserves, bringing those reserves down to about $871 million following the debt repurchase and related capital transactions.

Executive Chairman Michael Saylor referenced the move on Sunday in a post on X, writing: “This week we bought bonds, not bitcoin. The ₿itVac is charging.”

The repurchase marks a shift from the company’s usual bitcoin accumulation strategy as it looks to restructure liabilities tied to its bitcoin treasury model.

Upon settlement, the purchase reduced the company’s outstanding debt obligations to $6.7 billion from $8.2 billion.

Strategy holds 843,738 BTC acquired at an average price of $75,700 per coin, representing a total purchase cost of approximately $63.9 billion.

MSTR shares rose 1.9% in pre-market trading alongside bitcoin’s modest rise back to $77,000 over the weekend.

Read More: Strategy to repurchase $1.5 billion of 2029 convertible bonds using cash or bitcoin sales

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