Strategy Targets $1.5B Note Buyback as Bitcoin Sinks Below $78K

Bitcoin News

Strategy, the largest corporate Bitcoin treasury holder, said on Friday that it will repurchase roughly $1.5 billion of its zero-coupon 2029 convertible notes, retiring about half of that tranche's outstanding debt. According to a fresh filing with the Securities and Exchange Commission, the company entered into privately negotiated transactions with select noteholders, agreeing to buy back the paper for an estimated $1.38 billion. Strategy said it expects to fund the repurchases through existing cash reserves, proceeds from its at-the-market equity offering, or selective Bitcoin sales. The settlement is scheduled for the week after publication, though the firm cautioned the final figure could shift with market conditions.

The buyback dovetails with co-founder Michael Saylor's broader plan to equitize most of the convertible debt stack over the next three to six years, gradually converting credit holders into stockholders. The approach would lighten Strategy's roughly $8.2 billion outstanding debt load but introduces dilution for existing shareholders as new equity is issued over time. Demand for the company's funding instruments nonetheless remains robust — its Stretch Perpetual Preferred Stock, ticker STRC, posted a record $1.5 billion in daily trading volume on Thursday, signaling that capital markets are still willing to underwrite Saylor's accumulation engine even as spot Bitcoin drifts lower.

Bitcoin slipped to roughly $77,614 on Saturday, marking its lowest print since May 1 and erasing nearly all of the month's earlier gains. The flagship asset has spent recent sessions retesting horizontal support near $78,000 after losing the psychologically important $80,000 handle. The current drawdown leaves BTC meaningfully below its January all-time high, with spot turnover thinning into the weekend. Futures open interest, by contrast, expanded even as price stalled — a pattern traders typically read as fresh short positioning. Whether bulls can defend $77,500 as a higher low or capitulate toward the $75,000 region will likely set the tone for the coming week.

Macro headwinds compounded the technical breakdown. Iran is pressing forward with a transit toll regime on the Strait of Hormuz — the critical artery for global crude shipments — while reportedly barring vessels tied to the US-led 'Project Freedom' initiative. WTI crude closed the week above $100 per barrel, reigniting concerns over a fresh inflation impulse reminiscent of mid-2022. With disrupted supply chains, war-driven energy shocks, and elevated federal deficits converging at once, risk assets are absorbing a familiar cocktail of pressures. For now, the macro tape is doing the talking, and digital assets are trading in lockstep with broader risk-off sentiment.

Despite the gloom, several traders argue the latest leg lower is fertile ground for a contrarian setup. Derivatives data shows that as spot drifted lower over recent days, open interest in perpetual futures climbed — a telltale signature of fresh short positioning. More notably, funding rates have flipped negative on multiple venues, indicating leveraged participants are now paying to remain short. Spot candlestick structure through the weekend close has also failed to deliver a decisive lower close, leaving room for a squeeze. Optimists are circling the sub-$78,000 zone as a potential bear trap, while cautious observers warn that a clean break could open the door toward $75,000.

Institutional disclosures filed by Friday's regulatory deadline painted a bifurcated picture across crypto ETF exposure. Harvard University exited its ether ETF position entirely, a notable reversal after its high-profile IBIT disclosure late last year. Dartmouth College kept its IBIT exposure flat but disclosed a fresh 304,803-share position in the Bitwise Solana Staking ETF — one of the earliest endowment bets beyond Bitcoin and Ether into the broader altcoin universe. Emory University consolidated two Bitcoin funds into a single Grayscale Bitcoin Mini Trust holding of 1,354,148 shares, while Abu Dhabi's Mubadala steadily lifted its IBIT stake toward 14.72 million shares.

Bitcoin's $78,207 spot price sits squarely in the middle of a tightening range, with immediate support clustered at $77,536 and a deeper shelf at $76,025. A loss of the $73,990 floor would invalidate the constructive thesis and likely accelerate liquidations. To the upside, $79,209 caps the first reclaim attempt, with $81,002 and $82,893 marking the swing-pivot resistances above. RSI near 49.27 and a bearish MACD posture confirm the sideways trend, signaling neither side has decisive control. Bulls need a daily close above $79,200 on rising volume to flip the short-term structure constructive again; failure to do so keeps downside risk skewed toward the $76,000 handle.