Strategy Repurchases $1.5B in Notes at Discount Cutting Debt to $6.7B

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How the Strategy Debt Repurchase Affects the Balance Sheet

The 2029 notes were originally issued on November 21, 2024. They were part of a $3 billion offering with a 0% coupon. The conversion price sat at roughly $672.40 per share, a 55% premium at the time.

By buying back half the tranche below par, Strategy eliminated $1.5 billion in future claims. Because the notes carry no coupon, the savings came entirely from the discount. In addition, the move removed potential dilution from future conversions.

Andrew Kang, the company’s CFO, called it “both equity and credit positive.” He also noted plans to rebuild cash reserves over time.

BTC Yield Reaches 13.3% Year to Date

Strategy reported a year-to-date BTC Yield of 13.3% as of the announcement date. In total, that translates to a BTC Gain of 89,378 BTC, worth approximately $6.8 billion at recent prices.

BTC Yield is a proprietary key performance indicator. Specifically, it tracks how capital moves increase net Bitcoin exposure per share. The 0.7% bump from this Strategy debt repurchase reflects the benefit of retiring liabilities at a discount.

CEO Phong Le said the company achieved this while maintaining “disciplined capital allocation.” As a result, the metric has become central to Strategy’s investor communication.

843,738 BTC and Counting

As of May 25, 2026, Strategy holds 843,738 BTC. That makes it the largest corporate Bitcoin holder in the world. According to Bitcoin Treasuries, it controls roughly 4% of total supply.

The total cost basis stands at about $63.87 billion. The average price per coin is roughly $75,700. Bitcoin traded near $76,500 to $77,300 around the announcement, so the position sits in unrealized profit territory.

Recent weeks saw particularly aggressive accumulation. In May 2026 alone, Strategy bought roughly 24,869 additional BTC. It funded these purchases through ATM programs for MSTR equity and STRC preferred stock.

Capital Structure: Debt, Equity, and STRC

Strategy uses a multi-instrument capital model. It issues $STRC, a perpetual preferred stock it calls “Digital Credit.” Roughly $15.5 billion in STRC is currently outstanding alongside equity and convertible notes.

STRC trades near $99.3 and targets fixed-income investors. Meanwhile, MSTR common stock traded in the $158 to $165 range around the announcement.

Michael Saylor, founder and executive chairman, described the approach as a “dynamic, multi-variate capital allocation model.” He said these transactions demonstrate the optionality built into the structure.

Skeptics Question the Strategy Debt Repurchase

Not everyone sees this move as a positive signal. Critics on X have questioned whether BTC Yield qualifies as meaningful accounting. Some view the metric as non-standard and flattering to the company’s narrative.

Others worry about cash burn. Currently, the USD Reserve sits at $871 million, down from earlier highs. Some observers question whether Strategy can sustain preferred dividends if Bitcoin prices fall.

Peter Schiff, a longtime Bitcoin skeptic, replied critically to Saylor’s post on X. Short-seller narratives around MSTR have focused on dilution and leverage. Those concerns persist even as the company reduces its debt load.

What Comes Next for Strategy

Several open questions remain. Strategy still has roughly $1.5 billion in 2029 notes outstanding. Whether it retires the rest depends on market conditions.

The company also faces decisions on future BTC purchases and STRC issuance. Kang said Strategy plans to rebuild reserves through “Digital Capital, Digital Credit, and Digital Equity sales.”

For now, the transaction signals clear intent. Strategy is cutting leverage and increasing BTC per share. How that thesis plays out depends on where Bitcoin goes from here.

This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.