MicroStrategy Acquires 24,000 More Bitcoins After Early Redemption of $1.5 Billion Convertible Bonds

Strategy Inc. (Nasdaq: MSTR) announced that between May 11 and 25 it repurchased $1.5 billion of zero-coupon convertible notes due 2029 at an approximate 8% discount, spending $1.38 billion to reduce its outstanding convertible debt from $8.2 billion to $6.7 billion. The company reported a Bitcoin yield of roughly 0.7%, recording valuation gains of 4,391 BTC—equivalent to $333.3 million.

To fund this repurchase and other capital-market activities—and to acquire additional Bitcoin—Strategy issued $2 billion in face-value, floating-rate Series A perpetual preferred shares (STRC) and $84 million of common stock. It used the proceeds to purchase 24,869 BTC. Following these transactions, Strategy’s total Bitcoin holdings stand at 843,738 BTC, its Series A preferred share balance is $15.5 billion, and its U.S. dollar liquidity is $871 million.

The company reaffirmed that, under U.S. federal tax law, it has no retained earnings and does not expect to generate any in the near term. Strategy maintains that its preferred-share distributions will continue to be treated as non-taxable returns of capital. It also detailed the methodology and limitations behind its key Bitcoin metrics—Bitcoin Per Share, BTC Yield, BTC Gain, and BTC Dollar Gain—and offered forward-looking commentary on capital management and tax treatment.

In the same filing, Strategy disclosed that director Jarrod M. Patten exercised thousands of stock options granted between 2018 and 2020, selling a substantial portion on the open market to realize gains. Patten still holds 28,000 common shares, various series A perpetual preferred shares, and remaining director stock options.

According to international cryptocurrency outlets, by investing roughly $2 billion in mid-May to acquire 24,869 additional BTC, Strategy has extended its lead as the largest Bitcoin-holding public company. Its 843,738 BTC position is valued at approximately $65 billion on current market prices. However, following the release of its first-quarter results two weeks ago, analysts highlighted significant net losses driven by Bitcoin price volatility, focusing market attention on the speed of the company’s profitability recovery.

Originally a U.S. IT firm specializing in enterprise analytics and business-intelligence software, Strategy has progressively reshaped itself into what many describe as a “Bitcoin treasury,” building a significant crypto balance sheet. In recent years, a handful of U.S.-listed companies have employed combined issuances of convertibles, preferred shares, and common stock to fund Bitcoin purchases. Among them, Strategy stands out for the size of its holdings, positioning it at the intersection of the traditional software sector and the digital-asset market.