Strategy Inc. said it used about $1.38 billion in cash to repurchase $1.5 billion of 0% convertible senior notes due in 2029, while also extending its bitcoin accumulation. As of May 25, the company reported total holdings of 843,738 BTC.
Debt repurchase cuts outstanding convertibles to $6.7 billion
In its capital structure update, Strategy said it completed a series of transactions between May 11 and May 25 aimed at reducing liabilities while increasing bitcoin exposure. The debt buyback was executed at roughly an 8% discount to face value, lowering outstanding convertible debt from $8.2 billion to $6.7 billion. The company also reported $871 million in U.S. dollar cash reserves to support preferred stock dividends and debt interest payments.
Strategy said its bitcoin per share, or BPS, reached 220,900 sats. It added that the debt repurchase alone generated a 0.7% BTC yield, equal to the value of 4,391 BTC, or about $333 million.
$2 billion preferred issuance and $84 million stock sale fund new BTC purchase
The company also kept buying bitcoin. Through its at-the-market program, Strategy issued $2 billion in stated amount of variable-rate Series A perpetual preferred stock, trading under STRC, along with $84 million of Class A common stock, MSTR. It said the proceeds were used to acquire 24,869 BTC.
For 2026 year to date, Strategy reported a 13.3% BTC yield. That translated into growth of 89,378 BTC, which the company valued at roughly $6.8 billion.
Saylor and Kang frame the moves as balance-sheet management
Founder and Executive Chairman Michael Saylor said the transactions showed the flexibility of Strategy’s capital structure choices and its dynamic capital allocation model. He said the company can use cash, digital equity, digital credit, or digital capital to optimize the balance sheet, while keeping its long-term objective fixed on increasing bitcoin per share for common shareholders.
CFO Andrew Kang said the repurchase of the 2029 convertible notes was positive for both equity and credit. He added that Strategy plans to maintain substantial dollar reserves, currently at $871 million, and expects preferred distributions to be treated as non-taxable return of capital, or ROC.