Strategy May Sell Bitcoin: What’s the Reason?
Strategy may sell part of its Bitcoin reserves. The crypto market is closely watching why the company is doing this and what the move could mean going forward.
Summary
- Strategy is buying back half of its 2029 debt.
- Part of the funds may come from selling Bitcoin.
- The deal reduces debt but does not fully solve the problem.
- The market will watch how much Bitcoin the company has sold.
Strategy announced through an official filing to the U.S. Securities and Exchange Commission (SEC) that it has entered into private agreements to repurchase $1.5 billion of its convertible bonds maturing in December 2029.
Put more simply, the company is repaying part of its debt early. Instead of paying the full nominal value of $1.5 billion, Strategy will pay about $1.38 billion. This allows it to settle this debt with an approximately $120 million discount.
These bonds were originally issued in November 2024 with a total size of $3 billion. The current operation removes exactly half of the original debt, while the remaining $1.5 billion continues to stay on the company’s balance sheet under the same conditions.
The completion of the transaction is scheduled around May 19, 2026. After that, the repurchased bonds will be permanently canceled, meaning Strategy will no longer owe money on this portion of the issuance.
What Convertible Bonds Represent
Convertible bonds are a special type of debt.
On one hand, they work like a regular loan – investors give money to the company, and it must repay it in the future. On the other hand, these bonds can be converted into shares if the stock price rises enough.
In Strategy’s case, the bonds carry 0% interest. This means the company does not pay regular interest on them. For investors, the main opportunity for profit comes from the right to convert the bonds into shares if MSTR rises in value.
This is where the important detail comes in. The price at which the bonds can be converted into shares is $672.40 per share. At the time of writing, however, MSTR is trading around $183 according to Yahoo Finance.
This means the stock would need to rise by 267% by December 2029 for it to make real sense for bondholders to convert them into shares.
That is exactly why some investors have chosen to sell the bonds back to Strategy now, even at a discount. They receive around 92 cents for every $1 of nominal value instead of waiting years with the hope that the shares will reach a much higher level.
This is one of the most important signals in the entire deal. Investors who understand the conditions of these bonds best have apparently preferred guaranteed money now over the possibility of a major rise in MSTR in the future.
How Strategy Will Pay for the Deal
Strategy will finance the repurchase through three sources: available cash, the sale of new shares, and strategic sales of Bitcoin.
The second source is the so-called ATM equity offering. This means the company can gradually sell new shares directly on the market instead of making one large issuance all at once. In this way, it raises capital, but existing shareholders become diluted because the number of shares increases.
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The third source is the most sensitive for the crypto market: the sale of part of the corporate Bitcoin reserve.
Strategy is a company whose public identity in recent years has been built around aggressive Bitcoin accumulation. That is why every BTC sale from its balance sheet attracts attention, even when the reason is debt reduction.
Here the logic becomes a bit more complex, but it is important. Strategy previously took on debt, including through similar bonds, to finance its Bitcoin purchases. Now part of that BTC may be sold to repay part of the same debt.
In other words, the company is using a combination of cash, new capital from shares, and perhaps part of its Bitcoin reserve to reduce its liabilities. For now, however, it is still unclear exactly what portion of the $1.38 billion will be covered through Bitcoin sales.
What the Deal Solves and What Remains Unresolved
Strategy has several clear reasons to make this operation.
The first is financially direct: the company repays $1.5 billion in debt for about $1.38 billion and thus realizes an approximately $120 million discount.
The second reason is reducing the risk of future share dilution. Dilution means that if the bonds are ever converted into shares, the number of shares on the market will increase and the ownership percentage of current shareholders will become smaller.
The third reason is improving the balance sheet. When a company reduces its debt, it appears more stable, especially during periods of high market volatility and uncertainty.
But the deal does not solve everything.
Strategy removes only half of the original issuance. Another $1.5 billion of the same bonds remains active and carries the same conditions. This means that if MSTR ever approaches $672.40, the risk of conversion into shares will still not disappear completely.
There is also the question of whether the company will attempt to buy back the remaining half of the bonds if market conditions allow it to do so at a similar discount.
What the Market Will Watch From Here
The next few days will be important not only because of the finalization of the deal around May 19, but also because of how Strategy organizes its financing.
The market will mainly watch whether and how many Bitcoin tokens have been sold.
If it turns out that the Bitcoin sale represents only a small part of the total amount, investors will probably view the transaction as normal financial optimization — the company is using an opportunity to reduce its debt at a discount.
However, if it becomes clear that Bitcoin sales covered a large portion of the amount, the reaction may be different. Then part of the market may begin to view the operation not as a convenient transaction, but as a sign of pressure on the balance sheet.
The other important signal will be the price of MSTR after the repurchase is finalized.
If the shares rise above $200 during the next two weeks, that would show that the market views the debt reduction positively and does not see a serious problem in the company’s actions.
But if MSTR falls below $170, or if Strategy reveals that more than one-third of the amount came from Bitcoin sales, investors may begin to interpret the deal as a signal that the company is forced to use its most important asset to ease its debt structure.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Kosta Gushterov
Reporter at CoinsPress
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
