Strategy repurchased $1.5 billion of its 2029 convertible notes at an 8% discount, cutting outstanding debt from $8.2 billion to $6.7 billion and boosting its Bitcoin yield by 0.7%. The buyback consumed $1.38 billion in cash, drawing reserves down to $871 million and prompting a pause in STRC-funded Bitcoin purchases.
Strategy completed the repurchase of $1.5 billion zero-coupon convertible notes due 2029 at an 8% discount to par, reducing its aggregate convertible debt from $8.2 billion to $6.7 billion. The effective discount generated a 0.7% incremental Bitcoin yield.
The repurchase consumed $1.38 billion of the company’s $2.25 billion cash buffer earmarked for dividends and debt service, leaving $871 million in available reserves. This drawdown represents a 61% reduction in cash holdings established to support preferred-share obligations.
Management used proceeds from STRC preferred stock issuances and equity to fund the buyback, signaling a disciplined, multivariant capital-allocation strategy. Leadership emphasized proactive management of convertible debt to optimize the balance sheet.
STRC-funded Bitcoin purchases were paused during the debt repurchase window. Executives stressed that all capital tools—including potential future Bitcoin sales—remain available to sustain preferred yield and investor confidence.
Finance
