Strategy is moving ahead with a $1.5 billion debt buyback and has identified Bitcoin sales as one possible source of funding. The company said the repurchase could be financed with cash on hand, sales of its own shares in the open market, or potential BTC sales. That detail drew immediate attention because Strategy remains the largest public corporate holder of Bitcoin.
Bitcoin holdings sit at the center of the financing discussion
At the time of reporting, Strategy held about 818,869 BTC on its balance sheet, worth more than $65 billion. Data cited in the report showed the company acquired those holdings at an average price of $75,537, for a total cost of $61.81 billion. Chairman Michael Saylor has said before that the company is willing to use Bitcoin’s liquidity, while still keeping its stance as a net long-term buyer. That leaves the market focused on how far the company might go if it needs to unlock capital.
2029 bond repurchase aims to ease future liabilities
The bond buyback is being viewed as part of a broader capital structure adjustment. Strategy plans to repurchase its 2029 bonds at an 8% discount, a move designed to reduce future obligations. The trade-off is clear: lower liabilities later, but a meaningful near-term cash requirement now. For a company that actively uses equity markets, debt markets, and Bitcoin treasury exposure, that balance matters.
STRC trading spikes as dividend vote approaches
Strategy’s Series A Variable Rate Perpetual Preferred Shares, trading under STRC, also saw unusually heavy activity. Daily volume hit a record $1.53 billion last Thursday. The shares offer an annual dividend yield of 11.5% and carry a market capitalization of about $8.5 billion. Trading accelerated ahead of the dividend date. Shareholders are also taking part in a required vote on whether dividend payments should move from a monthly schedule to a semi-monthly one. The vote ends on June 8, and if approved, the first payment under the revised structure would be made on July 15.
MSTR falls after the announcement, even as Bitcoin buying continues
Strategy’s common stock, MSTR, fell 5.27% on Friday to $177.11 after the market digested the bond buyback plan and the possibility of Bitcoin sales. The stock opened at $182.11, reached a session high of $182.23, and dropped as low as $174.34. The decline came shortly after the company added 535 BTC for $43 million, paying an average of $80,340 per coin. Between May 4 and May 10, Strategy also raised $42.9 million through share sales. Equity issuance gives the company another route to fund Bitcoin purchases, though it can raise dilution concerns for shareholders.
In the first quarter, Strategy reported a sizable net loss, driven largely by fair value accounting changes tied to its Bitcoin portfolio. The company said periodic swings in the value of its BTC holdings can lead to major changes in reported profit or loss.