Key Takeaways:
Strategy's (MSTR) stock fell 15% this week after the enterprise software firm, known for its aggressive Bitcoin treasury strategy, pivoted to purchasing its own bonds.
“This week we bought bonds, not bitcoin. The ₿itVac is charging,” Strategy’s Chairman Michael Saylor confirmed in a post on X, sparking debate about the company’s market strategy.
The move is part of a plan to repurchase nearly $1.5 billion of its 0% convertible senior notes due in 2029, which the company may fund with existing cash, stock sales, or potential Bitcoin sales. The company’s latest filings show it holds 843,738 BTC, acquired for $63.88 billion and worth approximately $65.25 billion, indicating no Bitcoin was sold for the bond repurchase.
The strategic shift presents a complex picture for investors, fueling both bearish and bullish outlooks. Research firm 10x Research cited a potential change in Strategy's holding strategy, alongside $2.7 billion in spot-Bitcoin ETF outflows since May 7, as a key reason for its bearish Bitcoin outlook. However, Saylor’s framing of the move as a “recharge” suggests the pause is temporary. By repurchasing convertible debt at a discount, Strategy reduces the risk of future MSTR stock dilution, which in turn increases the amount of Bitcoin per share and strengthens its balance sheet for future capital raises.
This complex positioning comes after a first quarter in which top institutional investors increased their conviction in the company. Form 13F filings for Q1 2026 revealed that 13 of the top 15 institutional MSTR shareholders added to their positions, lifting combined holdings by $4.6 billion. Active managers like Capital International and Capital World Investors led the accumulation, adding over $2.27 billion collectively, even as the stock fell nearly 18% during the quarter.
This article is for informational purposes only and does not constitute investment advice.
