TLDR
- Strategy repurchased $1.5 billion in 2029 Notes for about $1.38 billion using company cash reserves.
- Debt reduction lowered convertible note principal from $8.2 billion to $6.7 billion after the transaction.
- Strategy issued STRC and MSTR shares, then used proceeds to buy 24,869 additional bitcoin holdings.
- The company reported 13.3% year-to-date BTC Yield and 89,378 bitcoin in BTC Gain for 2026.
- Strategy ended the period with 843,738 bitcoin and a USD Reserve of $871 million remaining.
Strategy Inc. completed a $1.5 billion debt repurchase and updated its bitcoin and capital position. The company said the moves covered May 11 to May 25, 2026. Strategy now holds 843,738 BTC and reported a 13.3% BTC Yield year to date.
Strategy Cuts Convertible Debt With Cash Repurchase
Strategy repurchased $1.5 billion in 0% Convertible Senior Notes due 2029. The company paid about $1.38 billion in cash for the notes. That price marked an 8% discount to par value.
The transaction reduced Strategy’s convertible notes from $8.2 billion to $6.7 billion. The company said it used cash reserves for the repurchase. It also said the move formed part of wider capital management activity.
Strategy reported BTC Yield of 0.7% from the debt repurchase. It also reported BTC Gain of 4,391 bitcoin from the transaction. BTC $ Gain stood at $333 million, based on May 22 pricing.
Michael Saylor, founder and executive chairman, commented on the company’s funding choices. “Strategy has the flexibility to fund strategic transactions using cash, Digital Equity, Digital Credit, or Digital Capital.” He said the company has several tools for balance sheet management.
Bitcoin Holdings Rise To 843,738 BTC
Strategy also sold Digital Equity, through MSTR, and Digital Credit, through STRC. The company issued $2.0 billion in STRC preferred stock. It also issued $84 million in MSTR Class A common stock.
The company used those proceeds to buy 24,869 bitcoin. After the purchases, Strategy held 843,738 BTC as of May 25, 2026. It also reported 220,900 Bitcoin Per Share, measured in sats.
Strategy said its year-to-date BTC Yield reached 13.3%. The company also reported BTC Gain of 89,378 bitcoin. Its BTC $ Gain reached $6.8 billion for the year to date.
Phong Le, president and chief executive officer, said the company had described this approach earlier. “We said we would proactively manage our convertible debt.” He also said Strategy used available capital tools for the debt action.
USD Reserve Stands At $871 Million
Strategy said its USD Reserve stood at $871 million on May 25, 2026. The company created the reserve on December 1, 2025. It uses the reserve to support dividends and interest payments.
The reserve supports payments on preferred stock and outstanding debt. Strategy said it plans to rebuild the reserve over time. It will base future funding moves on market conditions.
Andrew Kang, chief financial officer, addressed the company’s reserve plan. “Strategy remains committed to maintaining a robust cash reserve.” He said the reserve supports the credit quality of its Digital Credit securities.
Strategy also addressed tax treatment for preferred equity distributions. The company expects the payments to be treated as non-taxable return of capital. However, it said investors should consult tax advisers about their own cases.
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