MicroStrategy pauses Bitcoin buying to repurchase $1.5 bn of convertible debt

MicroStrategy (now branded as Strategy) announced it has temporarily halted its aggressive Bitcoin purchasing program to focus on buying back about $1.5 billion of convertible senior notes. The debt, issued in November 2024 with zero interest and a 2029 maturity, was repurchased at roughly $1.38 billion, giving the company an estimated $120 million discount and reducing its long‑term liabilities.

Executive Chair Michael Saylor said the pause is "strategic rather than permanent" and that the move strengthens the balance sheet ahead of future Bitcoin acquisitions. Strategy still holds 843,738 BTC, valued at roughly $64.4 billion and accounting for about 4.2% of the circulating supply. The company recorded a $12.5 billion accounting loss in Q1 2026 largely due to unrealised Bitcoin write‑downs under new accounting rules. Critics argue the heavy reliance on Bitcoin price appreciation adds leverage risk, but Saylor referenced the firm’s “BitVac” acquisition engine as a sign the Bitcoin buying engine may resume soon.