Opendoor (OPEN) Stock Raises $650M in Convertible Notes and Buys Back 5% of Stock

TLDR

• Opendoor Technologies raised $650 million through 0% coupon convertible senior notes due 2030.
• The company repurchased approximately 45.3 million shares at $3.49 per share, totaling $158 million.
• This is the first share buyback in Opendoor’s history as a public company.
• After costs, Opendoor adds roughly $440 million to its balance sheet.
• No net share issuance is expected unless the stock exceeds $10.38 per share.

Opendoor Technologies $OPEN announced a $650 million offering of 0% convertible senior notes due 2030 on August 13, 2026. The stock was trading at $3.49 on August 12, the day before the announcement, and slipped 2.51% following the news.

Opendoor Technologies Inc., OPEN

The notes carry no regular interest and mature on August 15, 2030. They are senior, unsecured obligations.

The initial conversion rate is set at 212.2466 shares per $1,000 principal amount. That works out to a conversion price of roughly $4.71 per share, a 35% premium over the August 12 closing price.

Alongside the debt raise, Opendoor repurchased around 45.3 million shares at $3.49 each, totaling $158 million. This represents 5% of shares outstanding as of July 28, 2026.

The buyback was authorized by the board of directors on August 12, 2026. It is the first repurchase the company has made since going public.

How the Money Breaks Down

After the buyback costs and approximately $52.5 million for capped call transactions, Opendoor expects to net around $440 million for its balance sheet. The company said it plans to use that capital to expand home inventory and grow its market footprint.

The capped call transactions were entered into with financial institutions and carry a cap price of $6.98 per share. That is a 100% premium over the August 12 closing price.

The structure is designed so that Opendoor does not expect to issue any net new shares unless the stock climbs above $10.38 per share.

Settlement and Placement

The offering is expected to settle on August 19, 2026, subject to standard closing conditions.

J. Wood Capital Advisor LLC served as placement agent for the deal. The firm will also purchase approximately $25 million of Opendoor common stock at the same time as the offering closes.

Opendoor framed the transaction as a way to cut the share count while raising growth capital at zero cost of debt. The company described the combined structure as reducing shares outstanding by 5% while bringing in $440 million at a 0% coupon.

The $OPEN stock closed at $3.49 on August 12 before slipping further to $3.23, a drop of about 7.45%, in the session following the announcement.

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