Strategy (MSTR) Retires $1.5 Billion In Convertible Debt At A Discount, Bitcoin Holdings Hit 843,738 BTC

Strategy paused its bitcoin buying machine and repurchased $1.5 billion of 0% Convertible Senior Notes due 2029 between May 11 and May 25. The company paid about $1.38 billion in cash, an 8% discount to face value, saving roughly $120 million and reducing total convertible note obligations from $8.2 billion to $6.7 billion. The repurchase drew down cash reserves to $871 million, which were originally set aside for preferred stock dividends and debt interest. Strategy continued raising capital through equity programs, issuing $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock and $84 million of common stock, then using proceeds to buy additional bitcoin. The company reported BTC Gain and BTC Dollar Gain from the bond buyback and continued tracking year-to-date BTC yield and gains.

"From May 11- May 25, Strategy repurchased $1.5 billion in aggregate principal of its 0% Convertible Senior Notes due 2029, paying approximately $1.38 billion in cash - an 8% discount to face value, the company said. The savings of roughly $120 million reduced the company's total convertible note obligations from $8.2 billion to $6.7 billion."

"The repurchase drew down Strategy's cash reserve to $871 million. That reserve, established in December 2025 to cover preferred stock dividends and debt interest payments, now stands as a liquidity buffer CFO Andrew Kang said the company plans to rebuild through future Digital Capital, Digital Credit, and Digital Equity sales."

"Alongside the debt reduction, Strategy continued deploying capital raised through separate equity programs. The company issued $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock (ticker: STRC) and $84 million of Class A common stock through its at-the-market offering programs, deploying those proceeds last week to buy 24,869 additional bitcoin Strategy now holds 843,738 BTC acquired at an average price of $75,700 per coin, a total outlay of roughly $63.9 billion."

"Strategy recorded a BTC Gain of 4,391 bitcoin and a BTC Dollar Gain of $333 million from the bond buyback alone, calculated as of May 22, 2026. Year to date, the company has logged a BTC Yield of 13.3%, a BTC Gain of 89,378 BTC, and a BTC Dollar Ga"

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