Business
Strategy Provides Capital Structure Update after Completing $1.5 Billion Debt Repurchase
Strategy Provides Capital Structure Update after Completing $1.5 Billion Debt Repurchase
About this update from Strategy Inc
TYSONS CORNER, Va.--(BUSINESS WIRE)-- Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy”) today announced the completion of a series of capital-markets and bitcoin transactions executed over the period May 11-25, 2026. These transactions include the previously disclosed repurchase of $1.5 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 (2029 Notes), the use of cash reserves for this purpose, and sales of Digital Equity (MSTR) and Digital Credit (STRC) under Strategy's at-the-market offering programs. At the conclusion of these transactions, as of May 25, 2026, Strategy holds 843,738 bitcoin, has 220,900 Bitcoin Per Share (in sats), has $6.7 billion aggregate principal amount of convertible notes and $15.5 billion aggregate notional amount of preferred stock outstanding, and has a USD Reserve of $871 million. Strategy plans to replenish the USD Reserve over time based on market conditions. Transaction Highlights: Completed repurchase of $1.5 billion aggregate principal amount of 2029 Notes for approximately $1.38 billion in cash, an approximate 8% discount to par Through the debt repurchase, generated BTC Yield of 0.7%, BTC Gain of 4,391 bitcoin, and BTC $ Gain of $333 million Lowered aggregate principal amount of convertible notes outstanding from $8.2 billion to $6.7 billion Issued an additional $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) and $84 million of Class A common stock (MSTR), and used these proceeds to purchase 24,869 bitcoin Achieved year-to-date BTC Yield of 13.3%, BTC Gain of 89,378 bitcoin, and BTC $ Gain of $6.8 billion "These transactions demonstrate the optionality we have built into Strategy's capital structure and our dynamic, multi-variate capital allocation model," said Michael Saylor, Founder and Executive Chairman of Strategy. "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. We remain focused on increasing Bitcoin Per Share for our common shareholders over the long term while maintaining a fortress balance sheet for our Digital Credit investors." "On our first quarter 2026 earnings call, we said we would proactively manage our convertible debt and use the full range of cap...