Strategy · SEC · Michael Saylor · The Block
Strategy to retire $1.5 billion in convertible notes at a discount, may sell bitcoin to fund buyback
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Strategy (NASDAQ: MSTR) plans to repurchase $1.5 billion worth of debt at a discount and listed bitcoin sales as a potential funding source.
Key facts
- Strategy holds 818,869 bitcoin worth more than $66 billion at current prices, the largest corporate BTC stockpile per The Block's treasury tracker
- The company added 535 BTC for $43 million last week, resuming purchases after a brief pause around its Q1 earnings release
- The company entered into privately negotiated transactions with zero-coupon convertible note holders on May 14, with settlement expected on or about May 19, according to an 8-K filed with the SEC
- In the deal, Strategy would pay approximately $1.38 billion total, retiring the debt at roughly 92 cents on the dollar
Summary
The company entered into privately negotiated transactions with zero-coupon convertible note holders on May 14, with settlement expected on or about May 19, according to an 8-K filed with the SEC. The final cash repurchase price is subject to adjustment based on the volume-weighted average price of Strategy's Class A common stock during an agreed measurement period, meaning the actual outlay could shift before closing. Strategy cited three potential funding sources for the buyback, including available cash reserves, proceeds from its at-the-market equity offering programs, and proceeds from the sale of bitcoin. The inclusion of a bitcoin sale as a funding mechanism carries weight.