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-coin-holding whale Strategy announced a discounted buyback of zero-coupon convertible bonds worth $1.5 billion that mature in 2029. The official site lists selling BTC as one of the potential fundraising channels.

Is this crypto super giant whale going to sell coins? Strategy, known for aggressively accumulating Bitcoin, recently plans to buy back debt worth up to $1.5 billion at a discount, and has listed “selling Bitcoin” as one of its potential ways to raise funds.

According to an 8-K filing submitted by Strategy to 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” originally scheduled to mature in 2029, with settlement expected to be completed around May 19.

In this transaction, Strategy will spend about $1.38 billion, effectively repaying the $1.5 billion debt at an “approximately 92%” discount ahead of schedule.

However, the final actual repurchase amount will be dynamically adjusted based on the “volume-weighted average price (VWAP)” of Strategy A ordinary shares over a specific period. This means that before the deal is formally finalized, the amount actually paid will still fluctuate with stock price movements.

For the funding sources for this large-scale repurchase, Strategy listed three main avenues: the company’s existing cash reserves, proceeds from “at-the-market offerings” (meaning raising funds by selling newly issued shares in batches on the secondary market at market price), and the proceeds from selling its Bitcoin holdings.

Among these, listing “selling Bitcoin” as a fundraising option has drawn especially close market attention. To ease investor sentiment, Strategy’s Executive Chairman Michael Saylor noted earlier this month that the company’s positioning is a “net holder of coins,” thereby downplaying concerns that the company might sell coins to repay debt.

Michael Saylor said at the time that the company would sell some Bitcoin as needed to pay dividends on its perpetual preferred stock STRC. He emphasized that even if Strategy truly sells coins in the future, the quantity it buys will absolutely far exceed the amount it sells: “for every Bitcoin sold, we will buy 10 to 20 more.”

After settlement of this transaction is completed, Strategy plans to cancel all the bonds it has repurchased. After this “debt slimming” move, Strategy still has about $1.5 billion in 2029-maturing bonds outstanding, which also implies that before this transaction, the total issuance of this type of bond by the company was nearly $3 billion.

Strategy currently holds as many as 818,869 Bitcoins; based on current market prices, their total value exceeds $66 billion, making it the largest publicly traded company in the world by Bitcoin holdings.

* This article is reprinted with permission from: “BlockBeats”
* Original title: “Strategy plans to redeem $1.5 billion in convertible bonds at a discount; ‘selling coins for cash’ becomes a potential fundraising option”
* Original author: Block Sister MEL