Strategy retires $1.5B debt at 8% discount, adds 24,869 BTC

Strategy repurchased $1.5 billion aggregate principal of its 0% convertible senior notes due 2029 for roughly $1.38 billion in cash between May 11 and May 25, 2026, an 8% discount to par. The buyback reduced outstanding convertible obligations from $8.2 billion to $6.7 billion.

The company reported an accounting BTC Gain of 4,391 bitcoin, equal to a BTC Dollar Gain of about $333 million calculated as of May 22, 2026. Strategy also added 24,869 bitcoin using proceeds from recent securities issuances, bringing total on-balance holdings to 843,738 BTC.

Strategy issued $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC, and sold $84 million of Class A common stock through its at-the-market offering programs. The company reported a Bitcoin Per Share metric of 220,900 satoshis on an assumed diluted basis.

Strategy’s USD Reserve, created in December 2025 to support preferred stock dividends and interest on debt, stood at $871 million after the transactions. CFO Andrew Kang indicated the company plans to rebuild that reserve over time through Digital Capital, Digital Credit and Digital Equity sales.

Founder and Executive Chairman Michael Saylor wrote, “These transactions demonstrate the optionality we have built into Strategy’s capital structure and our dynamic, multi-variate capital allocation model.” President and CEO Phong Le noted the repurchase aligns with the company’s plan to manage convertible debt and use all available capital tools, including selective bitcoin sales.

Strategy reported year-to-date metrics showing a BTC Yield of 13.3%, a net BTC Gain of 89,378 bitcoin and a BTC Dollar Gain of $6.8 billion for the period covered by its disclosures. The company classifies preferred stock distributions as a non-taxable return of capital for U.S. federal income tax purposes and the company does not expect to generate accumulated earnings and profits in the current year or the foreseeable future, while noting that tax expectations could change.

The transactions drew on cash reserves accumulated through prior capital markets activity. By reducing debt, issuing preferred stock and raising equity, Strategy used a mix of cash, equity and credit instruments to fund purchases and change its capital structure.