Key Takeaways
- Strategy retired $1.5B of 2029 convertible notes for $1.38B cash, an 8% discount to par, on Tuesday.
- The debt buyback added 4,391 BTC in gains, bringing Strategy’s total holdings to 843,738 bitcoin.
- Strategy plans to rebuild its $871M USD Reserve through future Digital Capital and equity sales.
Strategy Retires $1.5 Billion in Debt at 8% Discount and Adds 24,869 Bitcoin
The Tysons Corner, Virginia-based company repurchased $1.5 billion 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 lowered Strategy’s total convertible note obligations 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. Those figures reflect the accretion to shareholders that Strategy tracks as its primary performance metric.
Alongside the debt reduction, the announcement noted that Strategy issued $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC, and $84 million of Class A common stock under its at-the-market offering programs. The company deployed those proceeds to purchase 24,869 additional bitcoin.
As of today, Strategy holds 843,738 bitcoin. Bitcoin Per Share stands at 220,900 satoshis on an assumed diluted basis.
The company’s USD Reserve, established in December 2025 to support preferred stock dividends and debt interest payments, stands at $871 million following the transactions. Chief Financial Officer Andrew Kang said the company intends to rebuild that balance over time using a mix of Digital Capital, Digital Credit, and Digital Equity sales.
Founder and Executive Chairman Michael Saylor stated that the transactions reflect the flexibility built into the company’s capital structure. Strategy can fund transactions using cash, equity, or credit instruments, giving management several 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, multi-variate capital allocation model,” the company’s founder wrote.
President and CEO Phong Le pointed to the Q1 2026 earnings call, where the company said it would manage convertible debt and use all available capital tools, including selective bitcoin sales. The debt repurchase, Le said, reflects that stated approach.
Year to date, Strategy has achieved a BTC Yield of 13.3%, a BTC Gain of 89,378 BTC, and a BTC Dollar Gain of $6.8 billion.
The transactions covered the period May 11 through May 25, 2026, and drew on cash reserves accumulated through prior capital markets activity.
Strategy continues to classify preferred stock distributions as non-taxable return of capital for U.S. federal income tax purposes. The company said it does not expect to generate accumulated earnings and profits in the current year or the foreseeable future, though it cautioned that its tax expectations could change.
