US Company Reduces Debt and Accumulates 840,000 Bitcoins, Another Major Deal Emerges

Strategy Inc. (MSTR) repurchased $1.5 billion of its 0% convertible bonds maturing in 2029 at an approximately 8% discount—paying $1.38 billion—to reduce its outstanding convertible debt from $8.2 billion to $6.7 billion. At the same time, the company issued $2.0 billion of variable-rate perpetual preferred stock (STRC) and $84 million of common shares. It used the proceeds to acquire an additional 24,869 bitcoins, bringing its total bitcoin holdings to 843,738 coins.

In the same filing, Strategy Inc. reported that the aggregate par value of its preferred stock—including any contingent dividends—stands at $15.5 billion, while its U.S. dollar cash reserves amount to $871 million. The company also stated that, under U.S. tax law, its preferred-stock dividends will be treated as tax-free “capital returns” for the time being.

Separately, CEO Le Phong bought a small number of STRC shares on the open market in his minor child’s account. Director Jarod M. Patton exercised a large block of stock options with a strike price of about $18 per share and sold most of the resulting shares at between $145 and $162 each, while retaining the remainder along with various preferred-stock holdings.

Recent market reports note that, after this convertible-bond repurchase and the 24,869 BTC purchase, Strategy Inc. now holds 843,738 bitcoins at an average acquisition cost of roughly $75,700—representing a total investment of about $63.87 billion. In a separate disclosure, the company announced amendments to its charter to change the dividend record and payment dates for STRC preferred shares from once monthly to twice monthly, and outlined plans to maintain or increase the dividend rate—underscoring ongoing shifts in its capital-raising and dividend policies using its preferred-stock structure.

Formerly known as MicroStrategy, Strategy Inc. is a U.S. enterprise-analytics software provider that, since 2020, has effectively transformed into a “bitcoin holding company” through large-scale BTC purchases. As one of the few U.S.-listed firms to allocate a significant portion of its corporate treasury to bitcoin, Strategy Inc.’s capital structure and share-price volatility are highly sensitive to interest-rate levels and changes in digital-asset regulation.