Strategy Inc. Repurchases $1.5B Debt, Increases Bitcoin

Strategy Inc., a Virginia-based firm known for its large bitcoin holdings, has completed a significant debt repurchase while continuing to expand its digital asset treasury. The company repurchased $1.5 billion in aggregate principal of its 0% Convertible Senior Notes due in 2029 for approximately $1.38 billion in cash, an 8% discount to the notes' face value.

The transaction, executed between May 11 and May 25, 2026, reduced the company's total outstanding convertible notes from $8.2 billion to $6.7 billion. Company officials stated the move generated a "BTC Gain" of 4,391 bitcoin and a "BTC Dollar Gain" of $333 million based on internal accounting metrics. Concurrently, Strategy issued $2.0 billion in notional value of its Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC, and sold $84 million of its Class A common stock. The proceeds were used to purchase an additional 24,869 bitcoin.

As of May 25, 2026, Strategy's total bitcoin holdings stand at 843,738. The company's "USD Reserve," a cash buffer established in December 2025 to support preferred stock dividends and debt interest payments, now holds $871 million following these transactions, down from a...