TLDR:
- Strategy repurchased $1.5B in 2029 Convertible Notes at an 8% discount, saving roughly $120 million in cash outlay.
- The debt buyback generated a BTC Gain of 4,391 bitcoin and a BTC $ Gain of $333 million for Strategy’s balance sheet.
- Strategy’s year-to-date BTC Yield reached 13.3%, reflecting a cumulative BTC Gain of 89,378 bitcoin through May 2026.
- Total bitcoin holdings now stand at 843,738 BTC, backed by a USD Reserve of $871 million as of May 25, 2026.
Strategy Inc. has completed a $1.5 billion debt repurchase, buying back its 2029 Convertible Notes at an 8% discount. The move lowered the company’s aggregate debt from $8.2 billion to $6.7 billion.
Strategy also reported a year-to-date BTC Yield of 13.3%, equivalent to a BTC Gain of 89,378 bitcoin. As of May 25, 2026, the firm holds 843,738 bitcoin on its balance sheet.
Debt Repurchase Strengthens Balance Sheet
Strategy repurchased $1.5 billion in 2029 Convertible Notes for approximately $1.38 billion in cash. The transaction was completed at roughly an 8% discount to par value.
Through this single move, the company generated a BTC Gain of 4,391 bitcoin and a BTC $ Gain of $333 million.
The repurchase reduced Strategy’s total convertible notes outstanding from $8.2 billion to $6.7 billion. The company also holds $15.5 billion in aggregate notional preferred stock. Its USD Reserve now stands at $871 million following these transactions.
Executive Chairman Michael Saylor spoke on the flexibility the transaction reflects. “Strategy has the flexibility to fund strategic transactions using cash, Digital Equity, Digital Credit, or Digital Capital, giving us multiple levers to optimize our balance sheet and respond to market conditions,” he said.
Saylor added that the firm remains focused on increasing Bitcoin Per Share for common shareholders over the long term.
CEO Phong Le pointed to the Q1 2026 earnings call as the basis for this approach. “We retired $1.5 billion of convertible debt for $1.38 billion in cash. Year to date, we have achieved BTC Yield of 13.3%,” Le said. He described these actions as a direct reflection of disciplined capital allocation.
Bitcoin Accumulation Continues Alongside Capital Activity
Alongside the debt repurchase, Strategy issued $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC.
The company also issued $84 million in Class A common stock under its at-the-market offering program. Combined proceeds were used to purchase an additional 24,869 bitcoin.
These purchases brought total holdings to 843,738 bitcoin as of May 25, 2026. Strategy also reported 220,900 Bitcoin Per Share, measured in satoshis. The firm’s year-to-date BTC $ Gain reached $6.8 billion through these cumulative actions.
CFO Andrew Kang described the repurchase as both equity and credit positive. “Strategy remains committed to maintaining a robust cash reserve to support the credit quality of our Digital Credit securities,” Kang said.
He confirmed the firm plans to replenish its USD Reserve through a mix of Digital Capital, Digital Credit, and Digital Equity sales.
Strategy also confirmed it expects distributions on preferred equity instruments to be treated as non-taxable return of capital for U.S. federal income tax purposes.
The company stated it does not expect to generate accumulated earnings and profits in the near term. Shareholders were advised to consult their own tax advisors regarding the treatment of these distributions.
