Key takeaways
- Strategy retired $1.5 billion of 2029 convertible notes on Tuesday for $1.38 billion in cash, an 8% discount to par.
- The debt buyback added 4,391 BTC to the gains, bringing Strategy’s total holdings to 843,738 Bitcoin.
- Strategy plans to replenish its US$871 million reserve through future digital capital and stock sales.
Strategy retires $1.5 billion in debt at 8% discount and adds $24,869 Bitcoin
The Tysons Corner, Va.-based company repurchased $1.5 billion in aggregate principal amount of its 0% convertible senior notes due 2029 for approximately $1.38 billion in cash, an 8% discount to face value. The move reduced Strategy’s total convertible bonds from $8.2 billion to $6.7 billion.
The debt repurchase generated a BTC Gain of 4,391 bitcoin and a BTC Dollar gain of $333 million, calculated as of May 22, 2026. These numbers reflect shareholder growth that Strategy tracks as its primary performance metric.
Along with the debt reduction, the announcement said Strategy issued a notional $2.0 billion of floating-rate Series A Expandable Perpetual Preferred Stock, symbol STRC, and $84 million of Class A common stock under its at-the-market offering programs. The company used these proceeds to purchase an additional $24,869 bitcoin.
To date, Strategy holds 843,738 bitcoin. Bitcoin Per share amounts to 220,900 satoshis on an assumed diluted basis.
The company’s U.S. dollar reserve, established in December 2025 to support preferred stock dividends and debt interest payments, stands at $871 million as a result of the transactions. Chief Financial Officer Andrew Kang said the company intends to rebuild that balance over time using a combination of digital equity, digital credit and digital equity sales.
Founder and Executive Chairman Michael Saylor said the transactions reflect the flexibility built into the company’s capital structure. The strategy can finance transactions using cash, equity or credit instruments, providing management with multiple ways to respond to market conditions without being locked into a single path.
“These transactions demonstrate the optionality we have built into Strategy’s capital structure and our dynamic, multivariate capital allocation model,” the company founder wrote.
Chairman and CEO Phong Le highlighted the first quarter 2026 earnings call, during which the company said it would manage convertible debt and utilize all available capital tools, including selective instruments. bitcoin sales. The debt buy-down, Le said, reflects this stated approach.
Year-to-date, Strategy has achieved a BTC return of 13.3%, a BTC gain of 89,378 BTC, and a BTC dollar gain of $6.8 billion.
The transactions covered the period from May 11 to 25, 2026 and tapped into liquidity reserves accumulated through previous capital markets activity.
Strategy continues to classify preferred stock distributions as a tax-free return of capital for U.S. federal income tax purposes. The company said it does not expect to generate accrued profits in the current year or in the near future, while cautioning that its tax expectations could change.
