Disclosure: The author of this story owns stock in Strategy (MSTR).
Strategy (MSTR), the largest Bitcoin holding company in the world repurchased $1.5 billion of its 0% senior convertible bonds due 2029 for $1.38 billion last week, choosing to reduce its debt rather than increase its bitcoin cash, according to a filing Tuesday.
The company financed the repurchase using its cash reserves, reducing those reserves to approximately $871 million following the debt repurchase and associated capital transactions.
Executive Chairman Michael Saylor referenced the move on Sunday in an article on X, writing: “This week we bought bonds, not Bitcoin. The ₿itVac charges.”
The buyout marks a departure from the company’s usual Bitcoin accumulation strategy, which seeks to restructure liabilities related to its Bitcoin treasury model.
After settlement, the purchase reduced the company’s outstanding debts from $8.2 billion to $6.7 billion.
Strategy holds 843,738 BTC acquired 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 premarket trading, alongside bitcoin’s modest rise to $77,000 over the weekend.
Read more: Buyback Strategy for $1.5 Billion 2029 Convertible Bonds Using Cash or Bitcoin Sales
