Strategy (MSTR), the world’s largest corporate holder of bitcoin, has announced a plan to repurchase approximately $1.5 billion of its 0% Convertible Senior Notes due 2029 in privately negotiated transactions. The company disclosed in a Friday filing that it expects to pay about $1.38 billion in cash, representing a discount to par value.
The notes were originally issued in November 2024 with a $3 billion notional size and a conversion price of $672.40 per share — far above the current share price of around $183. The debt matures on December 2, 2029.
The final repurchase price will be partly determined by the volume-weighted average price of Strategy’s Class A common stock during a measurement period. Funding sources include existing cash reserves, proceeds from its at-the-market (ATM) share offering program, and potentially bitcoin sales. Following settlement, expected around May 19, the repurchased notes will be cancelled, leaving roughly $1.5 billion of the 2029 notes still outstanding.
The announcement came alongside a record trading day for Strategy’s preferred stock STRC, which saw $1.53 billion in volume on Thursday — more than four times its 30-day average. The surge, partly driven by pre‑ex‑dividend activity, helped fund the purchase of 11,707 bitcoin through the ATM program. STRC was down nearly 1% in pre‑market Friday as it began trading ex‑dividend.
MSTR common stock fell 2% in pre‑market trading, coinciding with a slight dip in bitcoin to around $80,400–$80,500.
