Saylor Reveals 3–6 Year Plan to Equitize Convertible Debt

Strategy plans to convert $6B in convertible debt to equity over 3-6 years while holding 714,644 BTC worth $49B.

Michael Saylor has outlined a multi-year plan to convert Strategy’s $6 billion in convertible bond debt into equity, as the company continues to expand its Bitcoin treasury position despite recent market volatility.

Saylor Reveals 3-6 Year Plan to Equitize Convertible Debt

Strategy founder Michael Saylor said the firm plans to equitize its convertible debt over the next three to six years.

The company currently carries about $6 billion in bond obligations. The plan would convert those bonds into stock rather than repay them in cash.

Equitizing convertible debt means bondholders receive shares in exchange for their notes.

This reduces liabilities on the balance sheet and lowers repayment pressure. However, issuing new shares can dilute existing shareholders.

The company stated on social platform X that it can withstand a major Bitcoin drawdown.

“Strategy can withstand a drawdown in BTC price to $8,000 and still have sufficient assets to fully cover our debt,” the firm said. Saylor responded publicly to that statement.

Bitcoin Reserves and Downside Coverage

Strategy holds approximately 714,644 BTC, valued at about $49 billion at current market prices. The company has built one of the largest corporate Bitcoin reserves.

Its holdings exceed the value of its outstanding convertible debt by a wide margin.

According to the firm, Bitcoin would need to decline around 88% for the value of its reserves to match its debt.

Even under that scenario, the company maintains it could fully cover its obligations. The coverage claim is based on current reserve levels.

The average purchase price of Strategy’s Bitcoin is about $76,000 per coin.

With Bitcoin trading near $68,400, the firm is down roughly 10% on its aggregate position. Price volatility remains a factor in short-term performance.

Related Reading: Michael Saylor Defies Bitcoin Losses, Vows Strategy Will Keep Buying

Stock Performance and Ongoing Accumulation

Strategy shares recently rose 8.8% to close at $133.88 at the end of the week. The move followed a brief Bitcoin recovery toward $70,000. The rally faded as Bitcoin retreated back to the high $68,000 range.

Despite the recent gain, Strategy stock remains about 70% below its mid-July peak of $456.

The decline mirrors broader weakness in Bitcoin, which has fallen about 50% from its early October high. Market conditions have remained unstable.

Saylor signaled another potential Bitcoin purchase by sharing the company’s accumulation chart on X.

Such posts have often preceded new acquisitions. If confirmed, the next buy would mark 12 consecutive weeks of Bitcoin accumulation by the company.

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