Strategy, described as the world's largest corporate bitcoin holder, bought $1.5 billion of 2029-maturity convertible bonds at below face value, cutting the outstanding balance to $6.7 billion.

Cointelegraph reported on May 26 that Strategy bought back $1.5 billion in face value of zero-coupon senior convertible notes early for $1.38 billion in cash.

The buyback was done at a price 8 percent below face value. Strategy used cash on hand to repurchase the 2029 maturities. Total debt in convertible notes fell to $6.7 billion from $8.2 billion. The company said the total unpaid notional amount of preferred shares was $15.5 billion and its dollar reserves were $871 million.

Buying bonds at a discount is seen as a way for companies to reduce future repayment burdens. As Strategy has continued large-scale bitcoin purchases until recently, the move is seen as putting more weight on managing its financial structure than on additional cryptocurrency buying.

Strategy did not announce a new bitcoin purchase this week. The previous week, it bought 24,869 bitcoins for $2.01 billion between May 11 and 17. The average purchase price was $80,985 per bitcoin.

The market response included a positive view of the debt reduction. Andre Dragosch (안드레 드라고슈), head of European research at asset manager Bitwise, described the decision as "a great move by Strategy." He said the debt reduction removes a major uncertainty around the cash repayment burden in mid-2028. He also noted that the conversion price of the convertible bonds was relatively high at about $672, meaning investors could have demanded repayment.

Bitcoin prices were weak over the same period. Based on TradingView, bitcoin fell about 1.2 percent over the past month and was down 29 percent over a year. With both the share price and bitcoin price weakening, Strategy effectively chose to use cash-like resources to reduce debt with maturity 부담.

Amid that 흐름, companies other than Strategy have also continued moves to build bitcoin stockpiles. Last week, 4 small bitcoin-treasury-holding companies bought a total of 602.6 BTC. Strategy still holds the most bitcoin among companies, and the market is watching whether it resumes additional bitcoin purchases and how it manages remaining debt and preferred shares.

Strategy has financed bitcoin purchases by using convertible bonds and stock issuance. As a result, the company's financial strategy is being assessed not only by the scale of its bitcoin holdings but also by debt maturities, conversion prices and whether it manages cash liquidity.

Great move by Strategy. Removes a major uncertainty around the cash repayment wall in mid-2028. Conversion price of these 2029 converts was relatively high (~$672) which is why it was quite likely that investors would exercise the put and demand repayment in 2028.