Michael Saylor’s Strategy Buys Bonds Over Bitcoin, Here’s Why It’s Bullish

Strategy (formerly MicroStrategy) pauses its Bitcoin purchase this week and decides to buy bonds, Michael Saylor confirms. This has sparked discussions among crypto and stock investors about whether it’s good or bad, as the company announced potential Bitcoin sales to purchase bonds.

While MSTR stock tumbled more than 5% last week, Strategy still holds 843,738 BTC and is far from signaling a slowdown in its Bitcoin accumulation strategy.

Michael Saylor Says Strategy Purchased Bonds This Week, Not Bitcoin

Michael Saylor took to X and confirmed a pause in Strategy’s Bitcoin accumulation to purchase bonds this week. He said, “This week we bought bonds, not bitcoin. The ₿itVac is charging.”

While the crypto community awaited clues about Strategy’s Bitcoin accumulation after the recent BTC crash and MSTR stock fall, the announcement by Michael Saylor triggered speculations.

Strategy announced plans to repurchase almost $1.5 billion in face value of its 0% convertible senior notes due 2029 for about $1.38 billion in cash. The company plans to use existing cash reserves, proceeds from at-the-market stock sales, and potential Bitcoin sales.

Recently, Michael Saylor said Strategy may sell its Bitcoin to purchase the 2029 convertible senior notes. Strategy purchased 24,869 BTC by selling STRC perpetual preferred shares and MSTR stocks for $2.01 billion.

The company currently holds 843,738 BTC worth $65.25 billion, indicating no Bitcoin sale to purchase bonds. This indicates the company is sitting at almost $1.50 billion in unrealized profit as BTCs were acquired for $63.88 billion.

Why This Move Is Bullish for MSTR Stock and Bitcoin Buying

The repurchase of its convertible debt instead of adding to its massive Bitcoin treasury this week reduces future MSTR stock dilution risks. Retiring debt at a discount lowers potential share issuance, which directly increases Bitcoin per share and benefits shareholders.

The convertible notes buyback at a discount also improves the balance sheet. Notably, it reduces concerns about leverage. It also boosts Strategy’s plan to raise capital in the future through equity, debt, or preferred shares such as STRC.

As Michael Saylor noted, the purchase recharges the “BitVac,” indicating the pause as preparation for future Bitcoin accumulation. Strategy optimizes its capital structure and frees up capacity for more BTC purchases when conditions are ideal.

The company has raised tens of billions through various instruments to fuel its digital asset treasury and shows no signs of slowing Michael Saylor’s “Bitcoin forever” narrative.

MSTR stock closed 3.01% lower at $159.89 on Friday. The stock is down more than 5% in a week, erasing its earlier gains. As CoinGape reported, the stock has dropped amid MSTR stock selloffs by CFO Andrew Kang and Director Jarrod Patten.