MicroStrategy has announced plans to repurchase approximately $1.5 billion of its 0% Convertible Senior Notes due 2029, potentially using Bitcoin sales as a funding source. The company disclosed in a Form 8-K filing that the buyback will be financed through available cash, proceeds from its at-the-market equity program, and possibly the sale of Bitcoin. This marks a significant shift in strategy for CEO Michael Saylor, who previously emphasized Bitcoin accumulation.
The notes, originally issued in November 2024 with a $3 billion notional size, are being repurchased below par at an estimated $1.38 billion in cash. MicroStrategy holds 818,869 BTC, acquired at an average cost of $75,537 per coin. The decision to potentially sell Bitcoin comes as part of a broader strategy to manage the company's $8.2 billion debt. Despite the announcement, MicroStrategy's shares fell 2% in pre-market trading, coinciding with a Bitcoin price dip to around $80,400.
MicroStrategy Considers Bitcoin Sale for $1.5B Bond Buyback
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