Strategy said it may fund the transactions using cash reserves, share sales, and possibly Bitcoin sales.
Business intelligence software giant, Strategy, announced that it has entered into privately negotiated agreements with certain holders of its outstanding 0% Convertible Senior Notes due 2029 to repurchase approximately $1.5 billion in aggregate principal amount of the notes.
The company said the estimated aggregate cash repurchase price is around $1.38 billion, although the final amount remains subject to adjustment based partly on the daily volume-weighted average price of Strategy’s Class A common stock during an agreed measurement period.
According to the official document released by the Michael Saylor-founded company, the actual cash amount paid could change depending on movements in the stock price during that period.
Strategy said it plans to fund the repurchases using available cash reserves, proceeds from sales of securities under its at-the-market offering program, and potentially proceeds from Bitcoin (BTC) sales.
The transactions are expected to settle on or around May 19th, subject to customary closing conditions.
Following completion of the repurchases, Strategy also revealed that it intends to cancel the repurchased notes. After the cancellation, around $1.5 billion aggregate principal amount of the 2029 convertible notes will remain outstanding.
The latest development comes days after Strategy reported a $12.5 billion first-quarter loss tied largely to Bitcoin’s price decline. Earlier this week, the company purchased another 535 BTC for $43 million. Its total holdings now stand at 818,869 BTC acquired for nearly $62 billion.