Strategy completes $1.5 billion debt repurchase, reduces convertible notes

Strategy Inc (NASDAQ: STRF/STRC/STRK/STRD/MSTR) completed the repurchase of $1.5 billion in convertible senior notes due 2029 for approximately $1.38 billion in cash, representing an 8% discount to par value, according to a company statement.

The transactions, executed between May 11-25, 2026, reduced Strategy's aggregate principal amount of convertible notes from $8.2 billion to $6.7 billion. The company used cash reserves to fund the repurchase and issued $2.0 billion in preferred stock and $84 million in common stock to purchase 24,869 bitcoin.

Following the transactions, Strategy holds 843,738 bitcoin and maintains a USD reserve of $871 million. The company has $6.7 billion in convertible notes and $15.5 billion in preferred stock outstanding as of May 25, 2026.

"Strategy has the flexibility to fund strategic transactions using cash, Digital Equity, Digital Credit, or Digital Capital," said Michael Saylor, founder and executive chairman. The company reported year-to-date bitcoin gains of 89,378 bitcoin valued at $6.8 billion.

Chief Financial Officer Andrew Kang described the debt repurchase as "both equity and credit positive" and said the company plans to replenish its cash reserve through various capital market activities based on market conditions.

Strategy expects distributions on its preferred stock to be treated as non-taxable return of capital for U.S. federal income tax purposes, as the company anticipates no accumulated earnings and profits in the current year or foreseeable future.

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