Strategy spent $1.38 billion from its roughly $2 billion USD Reserve to repurchase $1.5 billion of zero-coupon convertible notes due 2029, settling the debt at an 8% discount to par.
The buyback left just $871 million in cash on hand and paused bitcoin purchases for the week as the company restructured its balance sheet.
Discount buyback locks in $120 million in savings
The Tysons Corner firm completed the privately negotiated transactions between May 11 and May 25, 2026, according to its filing.
The 2029 notes carry a 0% coupon and were originally issued in November 2024 to fund bitcoin accumulation.
Paying $1.38 billion for $1.5 billion in face value locked in roughly $120 million of savings versus full repayment, and the company said the deal also generated a “BTC Gain” of 4,391 bitcoin through the effective discount.
CEO Phong Le framed the deployment as a disciplined capital decision:
“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%.”
Convertible debt stack drops to $6.7 billion
Total convertible notes outstanding fell from $8.2 billion to $6.7 billion after settlement, reducing future share-dilution risk if MSTR climbs above the $672 conversion price.
CFO Andrew Kang said the company will rebuild the reserve through a mix of equity, credit, and digital capital instruments.
The move marks a shift toward active liability management for a firm previously known for buying bitcoin rather than retiring debt.
Bitcoin treasury holds at 843,738 BTC
Strategy did not add to its bitcoin treasury during the closing week of the deal, though it had bought 24,869 BTC earlier in the May 11–25 window using STRC preferred and MSTR equity proceeds.
The treasury now totals 843,738 BTC, worth roughly $65 billion at prices near $77,031.
With $6.7 billion in convertible notes still outstanding, the next funding round will signal whether discount buybacks become a recurring tool in Strategy’s capital playbook.
