Company Accumulates 840,000 Bitcoins, Adjusts Convertible Bond Discount Buyback and Dividend Distribution

Strategy Inc. (MSTR) announced that between May 11 and 25 it repurchased $1.5 billion of zero-coupon convertible bonds due 2029 at an approximately 8% discount for $1.38 billion (about KRW 2 trillion), and used proceeds from issuing $2 billion of variable-rate Series A perpetual stretch preferred stock (STRC) and $84 million of common stock to purchase an additional 24,869 bitcoins. As a result, the company reduced its convertible bond balance from $8.2 billion to $6.7 billion and increased its bitcoin holdings to 843,738. Preferred stock outstanding now stands at $15.5 billion (roughly KRW 20 trillion), and its U.S. dollar reserves total $871 million (about KRW 1.1 trillion). The company also reaffirmed that, assuming no retained earnings under U.S. federal tax law, preferred stock distributions can continue to be treated as tax-free returns of capital.

On June 8, at its annual shareholders’ meeting, Strategy approved an amendment to its articles of incorporation changing the STRC dividend record and payment dates from a monthly to a semi-monthly schedule, meaning dividends will now be paid twice each month.

Strategy is the publicly traded company with the largest bitcoin holdings—about 843,000 bitcoins—and continues to execute a bitcoin-centric capital-raising and management strategy by combining preferred and common stock issuances with convertible bond buybacks.

Headquartered in Tysons Corner, Virginia, Strategy is an enterprise software and data analytics company that since 2020 has converted excess cash into bitcoin, earning a reputation as one of the most aggressive corporate bitcoin holders. In the U.S. market, companies that hold significant bitcoin or raise capital against it effectively serve as “bitcoin ETF alternatives,” and amid high interest rates and bitcoin price volatility, their capital structures and dividend policies have become key investor metrics.