Strategy buys back $1.5B in convertible notes as Saylor pauses Bitcoin purchases

Strategy skipped Bitcoin buying in the May 18–25 window and focused instead on debt reduction and capital structure adjustments.

According to a new SEC filing, between May 11 and May 25, the company repurchased approximately $1.5 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash, representing an approximately 8% discount to par value. The repurchase was funded using available cash as well as proceeds from the company’s at-the-market equity and preferred stock programs.

As a result of the transaction, Strategy reduced its total convertible notes outstanding from approximately $8.2 billion to $6.7 billion. The company said debt retirement generated a BTC Yield of 0.7%, a BTC Gain of 4,391 Bitcoin, and a BTC $ Gain totaling approximately $333 million.

Strategy still holds 843,738 Bitcoin worth about $65 billion at current market prices and carries a USD Reserve of $871 million. Year-to-date, the company has achieved a BTC Yield of 13.3%, a BTC Gain of 89,378 Bitcoin, and a BTC $ Gain of $6.8 billion.

The latest developments follow Strategy’s acquisition of approximately 25,000 Bitcoin worth more than $2 billion during the week ending May 17.

Executive Chairman Michael Saylor recently explained that Strategy’s capital approach is designed to support ongoing Bitcoin accumulation while simultaneously managing corporate liabilities and dividend obligations.

Saylor added that the company’s estimated breakeven rate for annual Bitcoin appreciation is roughly 2.3%. Should Bitcoin appreciate faster than that pace, Strategy believes it can use selective BTC sales to fund dividends while replenishing and expanding reserves through additional STRC-related capital raises.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.