Bitcoin Reclaims $77,000 as Strategy Prioritizes $1.5B Convertible Note Buyback
Bitcoin steadied near the $77,000 level on Monday, rebounding after buyers defended the $76,000 zone. BTC was last quoted around $77,421, up about 0.79% on the day, slightly outperforming a broadly flat crypto market.
Attention has shifted to Strategy’s balance-sheet moves. Executive chairman Michael Saylor said the company bought bonds rather than Bitcoin this week, describing the "BitVac" as charged, a signal that weekly accumulation has paused in favor of capital-structure work.
The timing is notable given Strategy’s scale in the market. The firm disclosed on May 18 that it purchased 24,869 BTC, lifting total holdings to 843,738 BTC. At current prices, those reserves are valued at more than $65 billion.
Strategy’s new focus is a buyback of its 2029 convertible notes. In privately negotiated deals with noteholders, the company plans to repurchase about $1.50 billion in principal for an estimated cash payment of roughly $1.38 billion, below face value. The company said funding could come from cash on hand, at-the-market equity sales, or Bitcoin sales.
The mention of potential Bitcoin sales drew scrutiny after Saylor previously discussed the possibility of small disposals as capital management rather than a change in stance. Strategy has not confirmed any Bitcoin sale connected to the buyback.
For MSTR shareholders, retiring part of the convertible tranche could reduce future dilution risk, since the notes can convert to equity under certain conditions. MSTR last traded at $159.89, down nearly 3%.
Bitcoin’s rebound is also being tested by ETF flows. U.S. spot Bitcoin ETFs posted about $1.256 billion in net outflows from May 18 to May 22, with the largest daily withdrawal on May 18 at roughly $648.64 million. The continued exits help explain why the recovery remains tentative.
Technically, holding above the 50-day simple moving average near $76,940 would support another attempt higher. Markets are watching the $78,500–$79,500 resistance band; a breakout would likely require stronger spot demand. The next upside test sits near the low-$80,000 area. On the downside, a break below $75,000 would weaken the current rebound.
