Strategy Cuts Debt While Strive Expands Bitcoin Treasury Holdings
Strategy completed a major balance sheet restructuring after repurchasing $1.5 billion of its 2029 convertible notes at a discount, while simultaneously expanding its Bitcoin treasury and easing investor fears over potential forced BTC sales.
Summary:
- Strategy reduced convertible debt to $6.7 billion after retiring notes below par value.
- The company funded the buyback through preferred stock issuance and equity sales rather than large-scale Bitcoin liquidations.
- Strategy added nearly 25,000 BTC during the restructuring period, pushing total holdings above 843,000 BTC.
The transaction marks one of the company’s largest capital optimization efforts since adopting its aggressive Bitcoin accumulation strategy, reinforcing its position as the world’s largest corporate BTC holder.
Strategy Retires Debt at Discount to Strengthen Balance Sheet
Strategy said it completed the repurchase of approximately $1.5 billion of its 2029 convertible notes between May 11 and May 25, generating what management described as a meaningful improvement in shareholder BTC yield metrics.
The notes were repurchased at roughly an 8% discount to par value, allowing the company to reduce overall liabilities while creating an estimated 0.7% incremental BTC yield benefit.
The move lowered aggregate convertible debt from approximately $8.2 billion to $6.7 billion.
Market participants had closely monitored the transaction after earlier filings suggested the company could potentially sell Bitcoin to finance the buyback.
Instead, Strategy executed the restructuring through a combination of preferred stock issuance and equity sales, avoiding large-scale BTC liquidation pressure on the market.
Preferred Stock and Equity Issuance Funded the Buyback
To finance the transaction, Strategy issued roughly $2 billion in Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC.
The company also raised an additional $84 million through at-the-market sales of its Class A common stock.
The financing structure reflects Strategy’s increasingly sophisticated use of capital markets to maintain Bitcoin exposure while actively managing debt maturities and liquidity conditions.
Importantly for investors, the company not only avoided net Bitcoin selling during the restructuring window but continued aggressively adding to its treasury position.
Bitcoin Treasury Climbs Above 843,000 BTC
Following the completion of the transaction, Strategy disclosed total Bitcoin holdings of approximately 843,738 BTC acquired at an aggregate cost basis near $63.9 billion.
The company’s average acquisition price now sits around $75,700 per Bitcoin.
During the restructuring period alone, Strategy added nearly 24,900 BTC to its balance sheet.
The continued accumulation reinforced investor confidence that the company remains fully committed to its long-term Bitcoin treasury strategy despite elevated leverage concerns earlier this month.
READ MORE: Bhutan Quietly Accelerates Bitcoin Sales as Treasury Strategy Shifts
Management also reported that year-to-date BTC yield climbed to 13.3%, equivalent to an estimated shareholder gain of roughly 89,000 Bitcoin this year.
Market Anxiety Over Forced BTC Sales Begins to Ease
Earlier in May, investor concerns intensified after Strategy disclosed that Bitcoin sales remained one of several theoretical funding options for managing debt obligations.
That disclosure triggered fears that a forced liquidation event from one of Bitcoin’s largest holders could pressure broader market liquidity.
The completion of the buyback without meaningful BTC disposals has now significantly reduced those concerns.
Analysts said the restructuring demonstrated that Strategy can continue refinancing debt obligations through capital market instruments while preserving – and even expanding – its Bitcoin treasury.
The result helped stabilize sentiment around highly leveraged Bitcoin treasury companies more broadly.
Capital Structure Continues to Shift Toward Preferred Equity
While convertible debt declined meaningfully, Strategy’s preferred equity exposure expanded substantially.
The company now carries approximately $15.5 billion in aggregate preferred stock outstanding following the latest financing activity.
Cash reserves currently stand near $871 million, with management indicating liquidity buffers will be gradually rebuilt over time.
The evolving capital structure reflects Strategy’s broader transition away from traditional convertible debt financing toward hybrid preferred instruments tied closely to Bitcoin performance and shareholder yield metrics.
Institutional Bitcoin Treasury Race Accelerates
The restructuring comes as competition among corporate Bitcoin treasury firms intensifies.
At the same time Strategy expanded its holdings, firms like Strive continued accelerating accumulation strategies of their own, with Strive recently disclosing the purchase of an additional 1,109 BTC, bringing its total treasury above 16,500 BTC.
Strive acquired an additional 1,109 $BTC for ~$85.4 million at an average cost of ~$76,988 per bitcoin.
STRIVE SNAPSHOT
Bitcoin holdings: 16,500
QTD BTC Yield: 11.0%
YTD BTC Yield: 23.4%
Amplification ratio: 45.2%$ASST $SATA pic.twitter.com/dxuee6jdRy— Matt Cole (@ColeMacro) May 26, 2026
The broader trend highlights how corporate treasury adoption is increasingly shifting from isolated speculative positioning toward an institutionalized capital allocation strategy built around long-term Bitcoin exposure.
For Strategy, however, scale remains unmatched.
With more than 843,000 BTC now under corporate control, the company continues functioning as both a leveraged equity proxy for Bitcoin and one of the most influential participants in the digital asset market itself.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
