Strategy has completed a $1.5 billion debt repurchase while expanding its Bitcoin treasury to 843,738 BTC, reinforcing its aggressive capital management strategy in 2026.
Key Takeaways
- Strategy repurchased $1.5 billion in convertible notes due 2029 at an estimated 8% discount.
- The company now holds 843,738 BTC, making it the world’s largest corporate Bitcoin treasury holder.
- Strategy reported a 13.3% BTC Yield year to date and a BTC gain of 89,378 coins worth about $6.8 billion.
- The company reduced its total convertible debt from $8.2 billion to $6.7 billion while continuing to raise capital through stock and preferred share sales.
What Happened?
Strategy Inc announced the completion of multiple capital market and Bitcoin related transactions carried out between May 11 and May 25, 2026. The company used part of its cash reserves to repurchase $1.5 billion worth of 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash.
At the same time, Strategy continued expanding its Bitcoin holdings through sales of its Class A common stock and preferred equity products. The company said these efforts helped strengthen its balance sheet while increasing Bitcoin exposure for shareholders.
Strategy has completed the repurchase of $1.5 billion of its 2029 Convertible Notes at an ~8% discount to par, generating an incremental 0.7% BTC Yield and lowering aggregate debt to $6.7 billion. $MSTR $STRC https://t.co/cbx4BlpsKV
— Michael Saylor (@saylor) May 26, 2026
Strategy Reduces Debt While Growing Bitcoin Holdings
The latest transaction marks one of Strategy’s biggest liability management moves this year. By buying back its convertible debt below face value, the company reduced outstanding convertible notes from $8.2 billion to $6.7 billion.
According to the company, the debt repurchase alone generated a 0.7% BTC Yield, equivalent to a gain of 4,391 BTC and roughly $333 million in BTC dollar gains.
Strategy also issued an additional $2 billion notional amount of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) alongside $84 million worth of MSTR common stock. The proceeds were used to acquire another 24,869 BTC.
As of May 25, 2026, Strategy’s total Bitcoin holdings stood at 843,738 BTC. Based on company disclosures, the firm spent approximately $63.87 billion acquiring its Bitcoin stack at an average purchase price of around $75,700 per BTC.
Michael Saylor Highlights Capital Flexibility
Michael Saylor, Founder and Executive Chairman of Strategy, said the transactions demonstrate the company’s ability to actively manage its capital structure across different market conditions. Saylor said:
He added that Strategy can fund strategic transactions using “cash, Digital Equity, Digital Credit, or Digital Capital,” giving the company several tools to optimize its balance sheet while focusing on increasing Bitcoin Per Share for shareholders.
Phong Le, President and Chief Executive Officer of Strategy, also referenced the company’s earlier commitment to proactively manage debt obligations. Le stated:
Strategy Maintains Large Cash Reserve
Despite spending heavily on the debt repurchase, Strategy confirmed it still maintains a USD Reserve of $871 million. The reserve was originally established in December 2025 to support dividend payments on preferred stock and interest obligations tied to company debt.
Chief Financial Officer Andrew Kang said the company plans to replenish the reserve over time through additional capital raising activities depending on market conditions. Kang said:
Strategy also reiterated that distributions paid on its preferred equity instruments are expected to continue qualifying as non taxable return of capital for the foreseeable future due to the company’s current earnings structure.
CoinLaw’s Takeaway
In my experience, this move shows that Strategy is no longer simply buying Bitcoin aggressively. The company is now operating like a full scale Bitcoin focused financial engine. I found the debt repurchase especially important because it signals confidence from management that they can actively reduce liabilities while still expanding their BTC treasury.
The most interesting part is how Strategy continues balancing multiple financing tools without slowing down Bitcoin accumulation. While many companies remain cautious about crypto exposure, Strategy keeps doubling down with a structured and calculated approach. If Bitcoin prices continue rising in the long term, these capital moves could become a blueprint for other public companies exploring Bitcoin treasury strategies.
