Strategy is planning a big shift in how it handles its debt.
Founder Michael Saylor said the company plans to reduce the $6 billion in convertible bonds on its balance sheet by turning that debt into equity over the next few years.
In simple terms, Strategy wants to convert lenders into shareholders.
In a post on X, Saylor said the company can survive even if Bitcoin drops as low as $8,000 before it struggles to cover its debt. He also confirmed that the bond-to-equity conversion will likely happen gradually over the next three to six years.
Right now, Strategy holds more than 714,000 BTC. At current prices, that stash is worth around $49 billion. Compared to its $6 billion in convertible debt, the company still has a large cushion — at least on paper.
Convertible bonds are loans that can later be turned into company shares. When that happens, the company reduces debt, but it also issues new stock. That can dilute existing shareholders, meaning their ownership percentage shrinks.
So while the plan may reduce refinancing risk and protect Strategy’s aggressive Bitcoin strategy, it comes with trade-offs.
The company is also changing how it plans to fund future Bitcoin purchases. On February 12, CEO Phong Le said Strategy will rely more on perpetual preferred shares — such as its STRC offering — instead of selling common stock.
Meanwhile, the company is feeling the pressure from Bitcoin’s recent volatility.
Strategy’s stock has struggled in recent months as Bitcoin pulled back. Shares jumped more than 8% on Friday to close at $133.88 after Bitcoin briefly moved back above $70,000. The stock added a small gain in after-hours trading.
But the bounce didn’t last long. Bitcoin has slipped back toward $68,700, down about 2% in the past 24 hours.
According to Bitcoin Treasuries data, Strategy is currently down about 9.7% on its Bitcoin investment, based on an average purchase price of $76,052. The company’s stock is also down roughly 70% from the all-time high it reached last year.
In short, Strategy is doubling down on its long-term Bitcoin bet — but it’s restructuring its balance sheet to better handle the ups and downs along the way.
