Bitcoin News: Strategy Cuts $1.5B Convertible Debt as BTC Holdings Reach 843,738 BTC

Strategy reduced part of its convertible debt while expanding its Bitcoin holdings to 843,738 BTC. The company repurchased $1.5 billion of its 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash, securing an 8% discount to par value.

The transaction lowered total convertible notes outstanding from $8.2 billion to $6.7 billion. At the same time, the firm continued increasing its Bitcoin exposure through equity and preferred stock offerings.

Bitcoin News: Strategy Retires Debt at a Discount

Strategy completed the repurchase during the May 11 to May 25 period, according to its latest capital structure update. The company used cash to retire an aggregate principal amount of $1.5 billion in 2029 notes for about $1.38 billion. That price placed the buyback at an estimated 8% discount to par.

The move forms part of Strategy’s broader effort to manage liabilities while maintaining exposure to Bitcoin. After the transaction, convertible notes outstanding fell to $6.7 billion. The company said the debt repurchase produced a BTC Yield of 0.7%, a BTC Gain of 4,391 Bitcoin, and a BTC $ Gain of about $333 million.

Most recently, Strategy resumed Bitcoin purchases after a one-week pause, adding 535 BTC for about $43 million. The company bought the Bitcoin at an average price of $80,340 per coin, lifting its total holdings to 818,869 BTC.

Bitcoin Holdings Reach 843,738 BTC

The Bitcoin news revealed that Strategy now holds 843,738 Bitcoin as of May 25. The figure includes 24,869 BTC purchased using proceeds from recent capital-market activity. The company raised $2.0 billion in notional value through Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, and another $84 million through Class A common stock sales.

Those proceeds went toward the latest Bitcoin purchases, while the debt repurchase used cash reserves. Strategy did not report any Bitcoin sales tied to the transaction. The company also reported 220,900 Bitcoin Per Share in satoshis on an assumed diluted basis, a metric it uses to track Bitcoin exposure for common shareholders.

Strategy’s USD Reserve stood at $871 million after the transactions. The company created the reserve in December 2025 to support preferred stock dividends and interest payments on outstanding debt. Management said it plans to rebuild the reserve over time, depending on market conditions.

Chief Financial Officer Andrew Kang said the 2029 note repurchase supports both equity and credit investors. He added that Strategy remains focused on maintaining a strong cash reserve for its Digital Credit securities. The Bitcoin news said future reserve replenishment may come through Digital Capital, Digital Credit, and Digital Equity sales.

Michael Saylor Highlights Financing Flexibility

Executive Chairman Michael Saylor said the latest transactions demonstrated how Strategy can shift between multiple financing structures depending on market conditions.

Management noted that future reserve rebuilding may involve additional Digital Equity, Digital Credit, or Digital Capital issuance programs.

President and Chief Executive Officer Phong Le said during the first-quarter earnings call that Strategy could eventually consider selective Bitcoin sales if management viewed them as financially beneficial. However, the latest filing showed no BTC sales tied to the recent debt repurchase.

The company also reported a year-to-date BTC Gain of 89,378 Bitcoin alongside a BTC dollar gain of approximately $6.8 billion.