Strategy has repurchased $1.5 billion in bonds, reducing total debt and enhancing Bitcoin yield per share.
Strategy has successfully completed a significant repurchase of its convertible bonds maturing in 2029, amounting to $1.5 billion. This buyback was executed at approximately an 8% discount to the bonds' face value.
Michael Saylor, the company's founder, highlighted the repurchase, noting that it has resulted in a 0.7% increase in Bitcoin yield, while reducing total debt to $6.7 billion.
This bond buyback also enhanced the firm's Bitcoin yield per share, which now stands at 13.3% for the year. Despite this activity, Strategy did not make any cryptocurrency purchases during the week concluding on May 25, maintaining a Bitcoin holding of 843,738 BTC.
The total estimated worth of these digital assets is around $63.87 billion, based on an average acquisition cost of about $75,700 per Bitcoin. Saylor pointed out that the company's flexible capital structure allows it to optimize its balance sheet in response to changing market conditions, with liquid assets in US dollars currently totaling $871 million.
Market Activity
In related market movements, several smaller public companies acquired a total of 602.6 BTC for approximately $46 million last week, with notable purchases including:
- Strive, with 381.6 BTC;
- DDC Enterprise Limited, which bought 200 BTC;
- The Smarter Web Company, acquiring 19 BTC;
- Hyperscale Data, purchasing 2 BTC.
These transactions occurred as Bitcoin prices dipped below $80,000, with Strive and DDC making their purchases at average prices of $79,348 and $79,496, respectively. This buying activity among smaller firms coincided with a significant outflow of $1.54 billion from spot ETFs tied to Bitcoin over six trading days, which analysts have described as a "contrarian indicator" reflecting retail investor sentiment. Notably, there are currently 198 public companies holding Bitcoin treasuries, with a collective ownership of 1.24 million BTC, which accounts for about 6% of the total Bitcoin supply.
Joseph Shalom, CEO of SharpLink Gaming, recently criticized Strategy's strategy towards its crypto asset management.
