Strategy, led by Michael Saylor, has paused its usual Bitcoin purchases to focus on cutting debt. The company bought back $1.5 billion of its 0% convertible senior notes due in 2029 for about $1.38 billion, retiring the debt at an 8% discount.
This buyback reduces Strategy’s outstanding convertible note debt from $8.2 billion to about $6.7 billion. The company used its cash reserves for the deal, leaving about $871 million after the transaction. Earlier this week, Executive Chairman Michael Saylor said the company decided to buy bonds instead of Bitcoin for the time being.
Most industry observers see this move as good for Strategy’s balance sheet. Buying back debt at a discount lowers future repayment pressure and shows proactive financial management. Analysts also say the repurchase helps address worries about large debts coming due in 2028 and 2029, especially since the notes’ conversion prices are considered high.
Even with the debt reduction, Strategy’s stock faced more pressure in pre-market trading and continued its recent decline. The company’s shares have struggled as the crypto market has softened, though Strategy is still the world’s largest corporate Bitcoin holder with over 843,000 BTC.
This update comes just a week after the company made one of its largest Bitcoin buys of the year, picking up nearly 25,000 BTC worth over $2 billion. The latest move suggests Strategy is now trying to balance buying Bitcoin with strengthening its finances as market conditions stay uncertain.
Strategy has completed the repurchase of $1.5 billion of its 2029 Convertible Notes at an ~8% discount to par, generating an incremental 0.7% BTC Yield and lowering aggregate debt to $6.7 billion. $MSTR $STRC https://t.co/6Jy0kST2d1
— Strategy (@Strategy) May 26, 2026
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