Strategy Completes $1.5 Billion Debt Repurchase and achieves BTC Yield of 13.3% YTD; Now Holds 843,738 BTC
Strategy Provides Capital Structure Update after Completing $1.5 Billion Debt Repurchase
TYSONS CORNER, Va., May 26, 2026 – 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 capital management tools available to us, including the disciplined sale of bitcoin. These transactions reflect that approach,” said Phong Le, President and Chief Executive Officer of Strategy. “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%. These actions reflect our continued focus on disciplined capital allocation.”
“The repurchase of the 2029 converts is both equity and credit positive for our investors and demonstrates our continued focus on liability management,” said Andrew Kang, Chief Financial Officer of Strategy. “Strategy remains committed to maintaining a robust cash reserve to support the credit quality of our Digital Credit securities. We plan to replenish our cash reserve over time through a mix of Digital Capital, Digital Credit, and Digital Equity sales based on market conditions.”
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute investment, legal or other professional advice. Please consult with your own financial, tax and legal advisors before making any investment decisions. BTC $ Gain is calculated as of May 22, 2026, 4:00 p.m. ET.
USD Reserve Update
On December 1, 2025, Strategy announced that it established a US dollar reserve (the “USD Reserve”), a management-designated portion of Strategy’s liquidity intended to support the payment of dividends on Strategy’s preferred stock and interest on its outstanding indebtedness.
As of May 25, 2026, the balance of the USD Reserve is $871 million.
Return of Capital Treatment
Strategy believes that it will not have any accumulated earnings & profits for U.S. federal income tax purposes (“E&P”), and does not expect to generate current E&P in the current year or the foreseeable future. Based on these expectations, Strategy continues to expect the distributions paid on its preferred equity instruments to be treated as non-taxable return of capital (“ROC”) for the foreseeable future.
Special tax considerations may apply to certain taxpayers based on their specific circumstances. Shareholders should consult their own tax advisors regarding the U.S. federal, state, local, and any non-U.S. tax consequences to them in connection with the receipt of any of these distributions. Strategy’s expectations on E&P may change, and any such change could affect the U.S. federal income tax treatment of the distributions.
About Strategy
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) is the world’s first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including developing and issuing novel fixed-income instruments that provide investors varying degrees of economic exposure to bitcoin. In addition, we are an industry leader in AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere™. We believe our combination of active bitcoin-focused capital management and a scaled operating software business positions us for long-term value creation across both digital asset and enterprise analytics markets.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of Strategy Inc in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
Contact:
Strategy
Chaitanya Jain
Director of Investor Relations
[email protected]
