Strategy Inc. Shifts Focus from Bitcoin to Bond Repurchases

Strategy Inc., the entity established by Michael Saylor to accumulate and hold bitcoin, has altered its strategy from buying more of the cryptocurrency to repurchasing its outstanding convertible notes. The company's move is unusual given its previous focus on accumulating bitcoin.

In a recent filing, Strategy disclosed plans to purchase back approximately $1.5 billion worth of its 2029 convertible senior notes, paying an estimated $1.38 billion in cash. This decision may be seen as a balancing act for the company's balance sheet, rather than a shift away from bitcoin.

TD Cowen analysts, who have maintained their Buy rating on Strategy, noted that the company's treasury operations continue to exceed expectations. They also bumped up their price target to $400, citing strong treasury activity and a change in the company's balance sheet after purchasing notes at a discount.