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 announces plan to buy back $1.5 billion worth of zero-coupon convertible bonds maturing in 2029 at a discount. The company has listed selling BTC as one of its potential fundraising channels.

Is the crypto giant whale about to sell off? Known for its aggressive Bitcoin accumulation, Strategy recently plans to buy back up to $1.5 billion in debt at a discount, and has listed "selling Bitcoin" as a potential fundraising method.

According to Strategy's 8-K filing with 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 due in 2029, with settlement expected around May 19.

In this transaction, Strategy will spend approximately $1.38 billion, effectively repaying the $1.5 billion debt 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 A common stock during a specific period, meaning the actual payment before the deal is finalized will still fluctuate with stock price movements.

Regarding the funding sources for this large buyback, Strategy listed three main channels: the company's existing cash reserves, proceeds from an "at-the-market offering" (selling new shares directly in the secondary market at market price), and selling some of its Bitcoin holdings.

Among these, listing "selling Bitcoin" as a fundraising option has attracted particular market attention. To soothe investor sentiment, Strategy's Executive Chairman Michael Saylor earlier this month stated that the company is a "net hodler," aiming to downplay concerns that the company might sell Bitcoin to pay off debt.

Saylor said the company would sell some Bitcoin as needed to pay dividends on its perpetual preferred stock STRC. He emphasized that even if Strategy does sell Bitcoin in the future, the amount bought will far exceed the amount sold — "for every Bitcoin sold, we will buy back 10 to 20."

After the transaction is completed, Strategy plans to cancel all the repurchased bonds. Following this "debt slimming" move, Strategy still has about $1.5 billion in bonds due in 2029 outstanding, implying that before this deal, the total issuance of such bonds was close to $3 billion.

Currently, Strategy holds as many as 818,869 Bitcoins, worth over $66 billion at current market prices, making it the largest publicly traded company holding Bitcoin.

* This article is reprinted with permission from: "BlockCast"
* Original title: "Strategy plans to buy back $1.5 billion in convertible bonds at a discount, 'selling Bitcoin for cash' as a potential fundraising option"
* Original author: Block Sister MEL