Strategy redeems convertible bonds at a $1.5 billion discount, listing selling BTC as a financing option

According to Decrypt, Michael Saylor’s Strategy announced on 5/15 that it would redeem 1.5B Dollars’ worth of 2029-due senior convertible notes at a discount. The estimated buyback amount is about 1.38 billion Dollars, equivalent to recovering at 80% of par value. The announcement lists STRC preferred stock and proceeds from selling Bitcoin as potential funding sources, and market traders price the company’s likelihood of selling Bitcoin before the end of this year at about 90%.

1.5B Dollars 2029 convertibles, redeemed at 80% of par

These 2029-due senior convertible notes were issued in November 2024. Strategy is repurchasing at 80% of par value (with par value of 100 Dollars per note paid only 80 Dollars). It is estimated to reduce 150 million Dollars of book debt and save interest expense before the notes mature.

The announcement also discloses a list of financing instruments, including a new issuance of STRC preferred stock, cash, and “proceeds from selling Bitcoin.” At the end of the first quarter, Strategy held about 65 billion Dollars of Bitcoin, and its total debt stack stood at 8.2 billion Dollars. The company explicitly frames this redemption as an “equitize” debt action over multiple years.

Saylor’s Q1 earnings call hinted: may sell BTC to support STRC dividends

During this year’s first-quarter earnings call, Saylor indicated that: “We may sell some Bitcoin to pay dividends, just to make the market comfortable.” The context at the time was STRC preferred stock’s high dividend obligations. This convertible note redemption is a concrete extension of the same logic—shifting funding channels from “issuing more debt” to “equity and existing assets.”

Market traders’ pricing for the forecast reflects the same direction: about a 90% chance that Strategy will actually sell Bitcoin before the end of 2026. That probability has clearly increased compared to before the first-quarter earnings call.

MSTR shares at 178 Dollars, up 18% year-to-date, still below the prior peak of 457 Dollars

Strategy’s U.S.-listed ticker MSTR was trading around 178 Dollars after opening on Friday, up about 18% year-to-date, but still far from the prior year’s peak of 457 Dollars. Investors’ willingness to accept Strategy’s approach of replacing debt issuance with equity and assets will be key to whether the stock can return to its peak.

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