Strategy Repurchases $1.5B Convertible Debt for $1.38B
With U.S. equity markets back online following the Memorial Day long weekend, the corporate cryptocurrency tape wasted no time. Strategy disclosed the retirement of $1.5B in convertible debt at a discount to par while updating its bitcoin treasury position, JPMorgan Chase priced two new bitcoin-linked structured note offerings, Bitcoin Depot was formally suspended from Nasdaq trading following its Chapter 11 filing, and infrastructure announcements arrived from Core Scientific and Hyperscale Data. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.STRATEGY CAPITAL STRUCTURE UPDATE:Strategycompleted the repurchase of $1.5B face value of its 0% Convertible Senior Notes due 2029 for approximately $1.38B in cash, nearly an 8% discount to par, asconfirmed. The transaction, which settled around May 19, was funded through a combination of cash, ATM proceeds, and bitcoin-related resources, leaving roughly $1.5B of the 2029 notes still outstanding.Last week, Strategy announced a purchase of nearly 25,000 bitcoin, funded by $1.949B in proceeds from sales of STRC preferred shares and $83.7M of common stock. Their purchase was made at an average of $80,985 per coin, bringing its total holdings to 843,738 bitcoin at an aggregate cost basis of $63.87B, or $75,700 per coin on average. The company reported a year-to-date bitcoin yield of 13.3% and disclosed a $871M USD reserve, with remaining ATM capacity spanning more than $51B across its five preferred and common equity programs.JPMORGAN BITCOIN STRUCTURED NOTES:JPMorgan Chasepriced two separate bitcoin-linked structured note offerings today, settling on or around May 29, asrevealed. The first is a set of Auto Callable Accelerated Barrier Notes tied to the iShares Bitcoin Trust ETF managed by BlackRock, maturing June 1, 2029, with 1.50x upside leverage, a 70% downside barrier, and a call premium of at least $185 per $1,000 face value, callable on June 1, 2027 if the ETF finishes at or above its initial value.The second offering links to the MerQube Bitcoin Vol Advantage Index, which applies a 6% annual daily deduction, and carries a contingent interest rate of at least 11.50% per annum, a 60% interest and trigger barrier, and a five-year maturity through May 30, 2031, with quarterly auto-call provisions beginning no earlier than November 27. Together, the two pricings signal continued demand for bank-structured, yield-bearing bitcoin exposure products among wealth management and institutional channels, even as implied bitcoin volatility fell to a nine-month low near the levels last seen in September 2025, per.BITCOIN DEPOT DELISTED:Bitcoin Depotwas suspended from Nasdaq trading at the open today after the ATM operator filed Chapter 11 bankruptcy on May 17 with 15 affiliated entities, for a total of 16 debtors, and failed to timely submit its Q1 Form 10-Q, asdisclosed. Nasdaq filed a Form 25-NSE to delist Bitcoin Depot's Class A common stock and warrants, with the removal effective ten days after filing. The company does not intend to appeal, and equity holders were warned of the potential for a complete loss of value.BITCOIN TREASURY MOVES:Hyperscale Datareported its bitcoin treasury reached roughly 700 bitcoin, valued at approximately $53.9M based on the May 24 closing price of $76,981 per coin, after its Ault Capital Group, or ACG, subsidiary acquired roughly 2 bitcoin in the open market during the week ended May 24, asshowed. Management reiterated its intent to fully deploy remaining allocated cash into bitcoin over time, and noted that ACG's divestiture is targeted for Q2 2027 as the company pivots toward AI data center operations.INFRASTRUCTURE AND MINING:Core Scientificnamed Steve Smith to its board of directors, the company. Smith is the current CEO of Zayo Group and former CEO of Equinix, where he grew revenue from approximately $400M to more than $4B, a background that aligns directly with Core Scientific's large-scale AI colocation expansion underway. The appointment adds seasoned data center infrastructure expertise as the company competes for hyperscaler contracts.PRICE ACTION:As of time of writing, bitcoin was trading at $77,510.58, while ether was trading at $2,128.83,.
