MicroStrategy plans to repurchase $1.5 billion in convertible bonds, STRC's daily trading volume hits a record high

CoinGeak.com reports that MicroStrategy (Strategy) has announced a plan to repurchase $1.5 billion in 2029-due convertible bonds, doing so against a backdrop of a surge in demand for its preferred stock STRC. In its Form 8-K filed on Friday, the company stated that STRC’s daily trading volume reached $1.53 billion on Thursday, setting a new all-time high and surpassing the previous $1.1 billion record from April 13. Executive Chairman Michael Saylor confirmed this milestone, calling it a “record-high trading volume,” and said it is a sign of increased institutional confidence in the instrument. STRC offers investors an 11.5% annualized dividend, and since its launch its market value has grown to approximately $8.5 billion, making it the preferred stock with the largest market capitalization globally. Thursday’s trading activity theoretically enabled MicroStrategy to raise about $735.4 million through market issuance structures, enough to buy approximately 9,066 Bitcoins at current prices. The convertible bond repurchase adds a new dimension to MicroStrategy’s ongoing capital structure restructuring. The company has publicly stated that it plans to convert approximately $6 billion of convertible debt into equity over the next three to six years.