Strategy may sell Bitcoin to finance $1.5B convertible note repurchase

Strategy's shift in Bitcoin strategy signifies a pivotal turn in debt management and corporate policy adaptation.

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Add us on Google by Vivian Nguyen May. 15, 2026

Strategy, the world’s largest corporate Bitcoin holder, may tap its Bitcoin reserves among other funding sources to finance a $1.38 billion buyback of $1.5 billion of its 2029 convertible notes, according to a Friday statement.

The privately negotiated deal prices the debt at roughly 8% below par and is set to settle around May 19, after which the repurchased notes will be cancelled.

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The plan was announced after Strategy Executive Chairman Michael Saylor outlined a capital strategy under which the company could use its large Bitcoin holdings to fund dividends and financial obligations while continuing to accumulate additional BTC over time.

During the firm’s May 5 earnings call, Saylor said the model is driven by issuing STRC preferred stock and reinvesting the proceeds in Bitcoin purchases.

The company currently owns 818,869 BTC valued at over $65 billion, with unrealized gains estimated at $3.9 billion at Bitcoin prices around $80,000.

Saylor explained that Strategy’s breakeven annual Bitcoin appreciation rate is roughly 2.3%; above that threshold, Bitcoin sales used to fund dividends can be offset by fresh capital raised through STRC issuance, allowing total holdings to continue increasing.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.