Strategy Inc., based in Tysons Corner, Virginia, has recently finalized a substantial capital structure update highlighted by a series of strategic transactions executed between May 11 and May 25, 2026. The firm confirmed the successful repurchase of $1.5 billion in aggregate principal amount of its 0% Convertible Senior Notes due in 2029, utilizing roughly $1.38 billion in cash reserves—representing an approximate 8% discount to par value.
As a result of these transactions, Strategy now holds 843,738 bitcoins and boasts a substantial Bitcoin Per Share metric, calculated at 220,900 sats. The company’s financial landscape also features an aggregate principal amount of convertible notes at $6.7 billion and a significant notional amount of preferred stock totaling $15.5 billion. Additionally, the company maintains a USD Reserve of $871 million, which it plans to replenish gradually, aligned with prevailing market conditions.
Key highlights of the transactions include:
– Completion of the $1.5 billion 2029 Notes repurchase for approximately $1.38 billion in cash, facilitating a BTC Yield of 0.7%, a gain of 4,391 bitcoins, and a monetary gain of $333 million.
– A reduction of the outstanding convertible notes from $8.2 billion to $6.7 billion.
– Issuance of $2.0 billion notional of Variable Rate Series A Perpetual Stretch Preferred Stock and $84 million in Class A common stock, with proceeds channeled to acquire an additional 24,869 bitcoins.
– A year-to-date BTC Yield of 13.3%, totaling a gain of 89,378 bitcoins and a corresponding monetary gain of $6.8 billion.
Michael Saylor, Founder and Executive Chairman, emphasized the adaptive nature of Strategy’s capital structure, stating that the company possesses the flexibility to execute strategic transactions using various financial instruments, allowing for an optimized balance sheet while responding to market dynamics. Saylor reiterated the firm’s commitment to increasing Bitcoin Per Share for shareholders while securing a robust balance sheet for investors in Digital Credit.
Phong Le, President and Chief Executive Officer, noted the company’s proactive management of convertible debt, illustrating the disciplined capital allocation approach that led to the retirement of $1.5 billion in convertible debt at a notable discount.
CFO Andrew Kang reiterated the positive implications of the debt repurchase for both equity and credit stakeholders, highlighting the firm’s ongoing commitment to maintaining a strong cash reserve that supports the credit quality of its Digital Credit securities.
In a related financial matter, Strategy’s USD Reserve, which was established in late 2025 to assist with dividends on preferred stock and interest payments on outstanding indebtedness, currently amounts to $871 million as of May 25, 2026. The company has communicated an expectation that distributions on preferred equity instruments will be treated as non-taxable returns of capital for the foreseeable future.
As the world’s first and largest Bitcoin Treasury Company, Strategy, which operates on the Nasdaq and LuxSE, continues to pursue innovative strategies aimed at extracting value from its bitcoin reserves and enhancing its enterprise analytics software offerings. The company is committed to building long-term value across digital asset and analytics markets through its active capital management initiatives.
