Disclosure: The author of this story owns shares of Strategy (MSTR).
Strategy (MSTR), the largest bitcoin holding company in the world repurchased $1.5 billion of its 0% convertible senior notes due 2029 last week for $1.38 billion, opting to reduce debt rather than increase its bitcoin treasury, according to a document released Tuesday.
The company funded the repurchase using cash reserves, reducing those reserves to approximately $871 million following the debt repurchase and related equity transactions.
CEO Michael Saylor referenced the move Sunday in a post on X, writing: “This week we bought bonds, not bitcoin. The ₿itVac is cashing out.”
The buyback marks a change from the company’s usual bitcoin accumulation strategy as it seeks to restructure liabilities tied to its bitcoin treasury model.
Following the deal, the purchase reduced the company’s outstanding debt obligations to $6.7 billion from $8.2 billion.
The strategy has 843,738 BTC purchased at an average price of $75,700 per coin, representing a total purchase cost of approximately $63.9 billion.
MSTR shares rose 1.9% in pre-market trading along with bitcoin’s modest rise to $77,000 over the weekend.
Read more: Strategy to buy back $1.5 billion of 2029 convertible bonds through cash or bitcoin sales
