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Strategy Makes a New $1.5 Billion Announcement: Did the Company Sell Bitcoin?
Strategy, the largest institutional investor in Bitcoin ($BTC), announced a $1.5 billion bond repurchase.
In an official statement, the company said it had entered into agreements with certain investors to repurchase approximately $1.5 billion worth of zero-interest convertible notes due in 2029.
The company stated that the expected cash purchase price would be approximately $1.38 billion.
Could Strategy Sell Bitcoin?
The statement also noted that the repurchase could be financed through:
- existing cash reserves;
- proceeds from the company’s at-the-market equity offering program;
- proceeds from the sale of Bitcoin.
According to the company, the transaction is expected to close around May 19.
After the repurchase is completed, the notes will be retired, leaving approximately $1.5 billion in outstanding principal amount of the 2029 notes.
Michael Saylor Previously Hinted at a Possible BTC Sale
As previously reported, last week Michael Saylor, founder of Strategy, hinted at the possibility of the company’s first-ever sale of Bitcoin.
The comments surprised many market participants.
However, Strategy CEO Phong Le later outlined two possible scenarios under which the company could sell BTC.
According to Le:
- in the first scenario, the company could sell Bitcoin to help finance dividend payments for STRC, which holds perpetual preferred shares;
- in the second scenario, Bitcoin sales could be used to take advantage of potential tax benefits.
