Strategy, the corporate Bitcoin heavyweight formerly known as MicroStrategy, is moving to repurchase $1.5 billion in convertible senior notes due 2029. The company will buy them back through privately negotiated deals with holders, paying around $1.38 billion in cash. It plans to fund the buyback with available cash, proceeds from its at-the-market stock offering program — or by selling some of its Bitcoin stash.
Repurchasing $1.5B in notes
The plan, filed with the SEC on May 14, 2025, targets notes set to mature in 2029. Strategy didn't say exactly how much of the $1.5 billion it expects to retire, but the estimated cash price of $1.38 billion implies a discount. CEO Phong Le has previously indicated the company might sell Bitcoin if it boosts shareholder value — for example, to pay dividends. This buyback could be one of those scenarios.
Funding sources include Bitcoin sales
Strategy has three funding levers: its cash reserves, proceeds from selling shares under its ATM program, and Bitcoin itself. The company holds 818,869 Bitcoin worth roughly $66 billion — making it the largest corporate holder of the asset. Selling even a fraction of that would easily cover the $1.38 billion price tag. But Le's team has historically been reluctant to offload BTC, preferring to raise capital through debt or equity. The ATM program offers a less controversial route, though diluting existing shareholders.
Preferred stock hits record volume
Meanwhile, Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock — ticker STRC — saw a record daily trading volume of $1.53 billion on May 14, 2025. That beat the previous record of $1.1 billion set just a month earlier, on April 13. STRC is designed to raise capital for Bitcoin purchases; at that volume, it could have netted the company roughly $735 million for more BTC. The surge in interest suggests investors are still keen on the company's Bitcoin strategy, even as it shifts gears to debt reduction.
Largest corporate Bitcoin holder
With nearly 819,000 Bitcoin on its books, Strategy dominates the corporate crypto treasury space. The $66 billion hoard gives it enormous flexibility — and leverage. The note repurchase is a bet that reducing debt will free up more room for future Bitcoin buys, or at least shore up the balance sheet. The market will be watching how the company balances its appetite for BTC with its obligations to note holders.
