What to know:
- Strategy purchase of $1.5B convertible debt funded via cash, equity, and STRC preferred shares.
- No Bitcoin was sold; instead, 24,869 BTC were added during the period.
- Debt reduced from $8.2B to $6.7B at roughly an 8% discount.
The recent Strategy purchase decision attracted significant focus owing to the firm’s repurchase of $1.5 billion worth of convertible debt at the same time that the company continued to increase its holdings of Bitcoin. In making this purchase, the firm was able to cut down its liabilities without having to sell its Bitcoin.
A recent purchase of Strategy made by Strategy involved retiring some portion of its convertible notes expiring in 2029 as well as buying into Bitcoin. Initially, it was thought that Bitcoin would have been sold, but this was not the case.
Rather, the strategy made use of the cash reserves alongside the proceeds from the sale of equity shares of MSTR and preferred stocks of STRC. Within the same time frame, the company managed to acquire another 24,869 Bitcoins on its books, proving that the purchase strategy had addressed both.
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How the Strategy purchase was funded
The overall purchase of Strategy was financed using three primary financing sources. These included cash reserves available for meeting financial commitments, equity issuance through at-the-market sale of MSTR stocks, and preferred stock issuance of STRC, which also helped finance purchases of Bitcoin.
Such a combination enabled the firm to retire the debt without the sale of Bitcoin. It is worth noting that the debt retired was just half of a $3 billion issuance that took place in November 2024.
For this Strategy purchase, the firm spent approximately $1.38 billion to repay its debt of $1.5 billion, making an average discount of around 8%. Convertible debt decreased from $8.2 billion to $6.7 billion through this process.
Performance is still being measured using metrics from the Bitcoin economy, indicating increases in Bitcoin return and value impact in the same timeframe as the purchase of Strategy.
Leadership’s view on the Strategy purchase
Michael Saylor has said that the Strategy purchase model is adaptable, because the firm will be able to use money, equity, and leverage, as circumstances dictate, with a long-term goal of raising the amount of Bitcoin per share.
According to CFO Andrew Kang, the Strategy purchase demonstrates disciplined capital allocation and a commitment to retaining high liquidity.
The bondholders accepted the buyback proposal at a discount since the conversion price is well above the current MSTR of $159, which stood at $672.40 per share. Due to this significant difference, it became less appealing to wait. Consequently, the Strategy acquisition offer was acceptable.
Overall outcome of the Strategy purchase
On May 25, 2026, Strategy has 843,738 Bitcoin. In addition to repaying debts, the company also made investments in Bitcoin during this particular Strategy purchase period.
The main outcome is as follows: The strategy managed to decrease debt, invest in Bitcoin, and refrain from selling its core Bitcoin stock during the Strategy purchase process.
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