Want to sell? MicroStrategy plans to buy back $1.5 billion in convertible bonds at a discount, and selling Bitcoin is listed as a potential fundraising method.

Bitcoin whale Strategy has announced a plan to repurchase, at a discount, $1.5 billion worth of zero-coupon convertible bonds maturing in 2029. The company will list selling BTC as one of its potential fundraising channels.

Is the crypto super whale about to sell coins? Known for aggressively accumulating Bitcoin, Strategy recently plans to buy back debt worth up to $1.5 billion at a discount, and has listed “selling Bitcoin” as one of its potential ways to raise funds.

According to the 8-K filing Strategy submitted to the U.S. Securities and Exchange Commission (SEC), the company reached an agreement with investors on May 14 to repurchase a batch of “zero-coupon convertible bonds” originally due in 2029, with settlement expected to be completed around May 19.

In this transaction, Strategy will spend approximately $1.38 billion—effectively repaying the $1.5 billion debt at about 92% of its face value ahead of schedule.

However, the final actual repurchase amount will be dynamically adjusted based on the “volume-weighted average price (VWAP)” of Strategy’s Class A common stock over a specific period. This means that before the trade is formally finalized, the amount actually paid will still fluctuate with stock price movements.

For the funding sources for this large-scale buyback, Strategy outlined three main routes: the company’s existing cash reserves; proceeds from “at-the-market offering” (meaning raising funds by selling new shares in the secondary market in batches at market price); and selling the Bitcoin it holds.

Among these, listing “selling Bitcoin” as one of the fundraising methods has drawn particular market attention. To soothe investor sentiment, Strategy’s Executive Chairman Michael Saylor earlier this month pointed out that the company’s positioning is that of a “net hodler,” in order to ease concerns in the market that the company might sell coins to repay debt.

Michael Saylor said at the time that the company would sell some Bitcoin, as needed, to pay dividends on its perpetual preferred stock STRC. He emphasized that even if Strategy ultimately sells Bitcoin to monetize it in the future, the amount it buys will absolutely far exceed the amount it sells: “for every Bitcoin sold, we will buy 10 to 20.”

After settlement of this deal is completed, Strategy plans to cancel all the repurchased bonds. After this “debt slimming” move, Strategy still has about $1.5 billion in 2029-maturing bonds outstanding, which also suggests that before this transaction, the total issuance of such bonds by the company was nearly $3 billion.

Strategy currently holds as many as 818,869 Bitcoins; based on the current market price, the total value exceeds $66 billion, making it the publicly traded company with the largest Bitcoin holdings in the world.

* This article has been republished with permission from: “BlockCast”
* Original title: “Strategy plans to repurchase $1.5 billion in convertible bonds at a discount—‘selling coins for cash’ becomes a potential fundraising option”
* Original author: Block Sister MEL