Strategy Skips Bitcoin, Buys $1.5B Bonds Instead: Saylor’s BitVac Charging?

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Michael Saylor Didn’t Buy <a href="https://bbg-news.com/btc-usd/">Bitcoin</a> This Week: Here’s What Strategy Bought Instead

This week, the company shifted its Bitcoin strategy and is now using around $1.5 billion to buy back its own bonds at a discount.

Michael Saylor, the company’s executive chairman, said this change is only for now. He also hinted that the company is getting ready to start buying Bitcoin again soon.

What Are Strategy’s Bonds?

Strategy issued convertible notes – a type of corporate debt – that don’t pay interest and will come due in 2029. These notes give holders the option to exchange them for company stock if Strategy’s share price reaches a certain level. In November 2024, Strategy raised $3 billion this way, and used nearly all of the money to buy Bitcoin.

Buying back its debt at a lower price helps the company in two ways: it lowers its future debts and gives it more financial freedom before it buys more Bitcoin. The company recently spent about $1.38 billion to pay off $1.5 billion in debt, saving around $120 million. This comes after the company reported a $12.5 billion loss for the first quarter of 2026, mainly due to accounting rules requiring it to record losses on the value of its Bitcoin holdings.

On X, Saylor framed the week’s move as a deliberate pause.

This week we bought bonds, not bitcoin. The ₿itVac is charging.

— Michael Saylor (@saylor) May 24, 2026

We call Strategy’s automated Bitcoin purchasing system the “BitVac.” This week saw its slowest Bitcoin purchase of 2026, hinting at a slowdown, so a temporary halt, while significant, wasn’t completely unexpected.

As of May 24th, Strategy owns 843,738 Bitcoin, currently valued at around $64.45 billion. They’ve been buying Bitcoin since August 2020, completing 110 transactions with an average purchase price of $75,701 per coin. For a significant part of the year, their STRC share program accumulated more Bitcoin than traditional ETF inflows.

Peter Schiff is warning that MicroStrategy’s strategy could fail if Bitcoin prices stop going up, suggesting the company relies on constant price increases to stay afloat. He also criticizes MicroStrategy’s use of debt, calling it a risky and unsustainable practice. Schiff sees the company’s recent bond repurchase as a sign of financial trouble, not a smart financial move.

The most important thing to look for next week is whether BitVac restarts operations or focuses on paying off its debts.

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2026-05-25 13:29