Strategy, the corporate bitcoin heavyweight best known for its relentless accumulation, is trimming debt—and might sell some of its stash to do it. According to an 8-K filing with the U.S. SEC dated May 14, the company agreed with investors to repurchase zero-coupon convertible notes due 2029 for roughly 13.8 billion dollars, effectively 92% of par value. The transaction is expected to settle around May 19.
Dynamic Pricing, Three Funding Routes
The final buyback amount will adjust based on the volume-weighted average price (VWAP) of Strategy's class A common stock during a specified period, meaning the ultimate payout will fluctuate with share price until the deal closes. To fund the repurchase, Strategy named three sources: its existing cash reserves, proceeds from at-the-market equity offerings (periodic sales of new shares on the secondary market), and—most notably—selling some of its bitcoin holdings.
The bitcoin sales option immediately drew attention. Executive Chairman Michael Saylor had already sought to preempt concerns earlier this month, describing the company's stance as a “net hoarder.” He explained that any bitcoin disposals would be limited to covering dividends on its perpetual preferred stock, STRC, and stressed a key ratio: for every one bitcoin sold, Strategy would buy 10 to 20 bitcoins in the future.
Debt Slimming, Massive BTC Treasury
Once the repurchase is completed, the bought-back notes will be cancelled entirely. After this round of deleveraging, Strategy will still have about $1.5 billion of the same 2029 notes outstanding, implying an original total of nearly $3 billion in that series. Meanwhile, the company’s bitcoin treasury remains enormous: 818,869 BTC, worth over $66 billion at current prices. Saylor’s message is clear—any sell-off would be a rounding error compared to the core hoard.