Strategy Pauses Bitcoin Buying to Repurchase $1.5 Billion in Convertible Debt

Michael Saylor’s Strategy has temporarily paused its aggressive Bitcoin buying strategy this week, choosing instead to repurchase nearly $1.5 billion worth of convertible senior notes below face value. The move signals a short-term shift in capital allocation as the company focuses on strengthening its balance sheet while preparing for future Bitcoin accumulation.

Strategy’s convertible bonds, issued in November 2024, are zero-interest corporate debt instruments set to mature in 2029. Investors can convert the notes into company shares if the stock reaches a predetermined price level. The company originally raised $3 billion through the offering and directed most of the proceeds toward Bitcoin purchases, reinforcing its position as the largest corporate BTC holder.

By buying back approximately $1.5 billion in debt for around $1.38 billion, Strategy secured an estimated $120 million discount. The repurchase reduces long-term liabilities and creates additional financial flexibility for future Bitcoin acquisitions. The decision comes after the company reported a $12.5 billion accounting loss in Q1 2026, largely tied to unrealized Bitcoin write-downs under updated accounting standards.

Saylor described the pause as strategic rather than permanent. On X, he referenced the company’s “BitVac” Bitcoin acquisition engine, suggesting the slowdown is temporary and that more BTC purchases could resume soon. Earlier in the week, Strategy recorded its smallest Bitcoin purchase of 2026, already hinting at a reduced buying pace.

As of May 24, Strategy holds 843,738 BTC valued at roughly $64.45 billion, acquired at an average purchase price of $75,701 per Bitcoin across 110 transactions since August 2020. The company’s STRC share issuance program has consistently outperformed Bitcoin ETF inflows in BTC accumulation throughout much of the year.

Critics, including gold advocate Peter Schiff, continue warning about potential leverage risks tied to Strategy’s Bitcoin-focused model. Schiff argues the company’s long-term sustainability depends heavily on rising BTC prices and sees the debt repurchase as a sign of mounting financial pressure.

Investors are now watching closely to see whether Strategy resumes large-scale Bitcoin purchases next week or prioritizes additional debt management initiatives before reactivating its BTC buying strategy.