Strategy repurchases $1.5 billion in 2029 convertible notes, keeps Bitcoin treasury intact

• Strategy repurchased $1.5 billion of its 0% 2029 convertible notes at an 8% discount.
• The firm maintained its holdings of 843,738 BTC and achieved a 13.3% BTC yield year-to-date.
• Bitcoin treasury company Strive acquired 1,109 BTC, increasing its total Bitcoin holdings to 16,500 BTC. 

Strategy announced Tuesday it has repurchased $1.5 billion in aggregate principal of its 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash, reflecting an 8% discount to par. The transaction contributed a Bitcoin (BTC) yield of 0.7%, alongside a BTC gain of 4,391 BTC and a BTC-dollar gain of $333 million.

Strategy reduces debt exposure without impacting Bitcoin holdings

Following the buyback, Strategy reduced its outstanding convertible notes from $8.2 billion to $6.7 billion. The repurchase was funded using existing cash reserves, supplemented by proceeds from at-the-market (ATM) sales of its Class A common stock (MSTR) and preferred securities (STRC).

During the same period, the firm issued $2 billion in Variable Rate Series A Perpetual Stretch Preferred Stock and $84 million in common equity. Proceeds from these capital raises were deployed to acquire 24,869 BTC.

Despite the debt reduction, Strategy maintained its Bitcoin treasury position at 843,738 BTC. The firm reported Bitcoin Per Share (BPS) of 220,900 sats and a USD reserve of $871 million, alongside $15.5 billion in outstanding preferred stock.

The firm previously hinted at a possible combination of its existing cash reserves, proceeds from its at-the-market (ATM) offering program and potential sales of Bitcoin holdings to finance the repurchase.

Strategy has generated a year-to-date BTC Yield of 13.3%, with total BTC gains of 89,378 BTC and a BTC dollar gain of $6.8 billion.

Strategy CEO Michael Saylor said the transactions highlight the firm's multi-layered capital strategy, noting it can deploy cash, equity, or credit instruments to optimize its balance sheet while growing Bitcoin exposure per share.

"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," Saylor stated in a statement.

The company's President, Phong Le, added that the discounted debt repurchase reflects disciplined capital allocation. CFO Andrew Kang also described the move as both "equity and credit positive for our investors."

Strive adds 1,109 BTC, boosts treasury to $1.2 billion

Meanwhile, Bitcoin treasury firm Strive disclosed it purchased 1,109 BTC, bringing its total holdings to 16,500 BTC, worth $1.2 billion at the time of writing.

The acquisition, revealed in a filing to the US Securities and Exchange Commission (SEC), was partially funded through preferred stock and equity sales at an average purchase price of approximately $76,988 per BTC.

Bitcoin slipped under $77,000 at publication time, changing hands at $76,477, marking a 1.4% decline on the day.