Written by Zoltan Vardai , Staff Writer.Reviewed by Bryan O'Shea , Staff Editor.Written by Zoltan Vardai , Staff Writer.Reviewed by Bryan O'Shea , Staff Editor.Strategy buys back $1.5B of debt at discount, cuts outstanding notes to $6.7B
Latest NewsPublishedMay 26, 2026Strategy reduced aggregate convertible notes outstanding to $6.7 billion after repurchasing 2029 notes for $1.38 billion in cash.
Michael Saylor's Strategy, the largest corporate Bitcoin holder, has repurchased $1.5 billion of its 0% convertible senior notes due in 2029 for $1.38 billion at an 8% discount to par, in a move that significantly cuts future debt obligations.
The purchase reduces Strategy’s outstanding debt through convertible notes from $8.2 billion to $6.7 billion for 2029, the company announced on Tuesday. The notes were repurchased using the company's cash reserves.
Strategy also reported an additional $15.5 billion in aggregate notional amount of outstanding preferred stock and a USD reserve of $871 million.
Buying back debt at a discount can strengthen the balance sheet of a company by reducing future payment obligations and shows active debt management from Strategy, typically seen as a positive sign by shareholders.
The update comes after Strategy did not announce a fresh Bitcoin purchase this week, following its $2.01 billion purchase the prior week. Four smaller Bitcoin treasuries stepped in to buy a cumulative 602.6 BTC worth about $46 million last week, Cointelegraph reported earlier on Tuesday.
Strategy announces $1.5 billion outstanding note buyback. Source: Strategy.com
Crypto industry watchers praised the debt buyback.
“Great move by Strategy,” wrote asset management firm Bitwise’s European head of research, André Dragosch, adding that the debt reduction removes a “major uncertainty around the cash repayment wall in mid-2028,” as investors would likely demand repayment due to the relatively high conversion price of these notes, around $672.
Related: New York lawsuit tests lost property claim over dormant Bitcoin
Strategy shares sink 3% after announcement
While a reduction in outstanding debt is typically a positive sign for shareholders, Strategy’s stock price fell 3% in pre-market trading on Tuesday and was changing hands at above $159 at the time of writing.
The slide adds additional pressure to Strategy’s declining share price, which fell 10% during the past month and 59% during the past year, data from Yahoo Finance shows.
Bitcoin’s price also fell by about 1.2% during the past month and by 29% over the past year, according to TradingView.
MSTR/USD, 1-day chart. Source: Yahoo Finance
The move comes a week after Strategy announced its third-largest investment of 2026, as it acquired 24,869 BTC for $2.01 billion between May 11 and 17, at an average purchasing price of $80,985 per BTC, Cointelegraph reported last Monday.
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Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.More on the subject
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