Business intelligence firm Strategy has announced plans to repurchase approximately $1.5 billion worth of its outstanding 0% Convertible Senior Notes due in 2029 through privately negotiated agreements with selected noteholders.
The company disclosed that the estimated cash cost of the repurchase stands at roughly $1.38 billion. However, the final figure could still change depending on the volume weighted average price of Strategy’s Class A common stock during a specified measurement period.
According to official filings from the company founded by Michael Saylor, fluctuations in the stock price may directly affect the total amount ultimately paid for the repurchased notes.
Strategy stated that it intends to finance the transaction using a combination of existing cash reserves, proceeds generated through its at the market share offering program, and potentially funds raised from selling Bitcoin holdings.
The company expects the repurchase transactions to close on or around May 19, provided standard closing conditions are satisfied.
Strategy to Cancel Repurchased Notes
Once the repurchase process is completed, Strategy plans to cancel the acquired notes. Following the cancellation, approximately $1.5 billion in aggregate principal value of the 2029 convertible notes will still remain outstanding.
The announcement comes shortly after the company reported a first quarter loss of $12.5 billion, driven largely by the recent decline in Bitcoin prices.
Despite the losses, Strategy continued expanding its Bitcoin treasury this week by purchasing an additional 535 BTC for approximately $43 million. The company now holds a total of 818,869 BTC acquired at a combined cost approaching $62 billion.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
