Breaking: Michael Saylor Announces $1.5B Bond Buyback As Strategy Boosts Bitcoin Yield
Highlights
- Michael Saylor's Strategy has bought back its convertible noted worth $1.5 billion.
- The company revealed that this move led to a BTC Yield boost of 0.7%.
- However, last week, Strategy didn't purchase any BTC as it directed cash flow towards the repurchase of bonds.
Bitcoin treasury firm Strategy has registered a $1.5 billion convertible bond repurchase. It comes as the company halted its spree to acquire more Bitcoin via new equity and preferred stock sales last week, according to Michael Saylor’s announcement on Tuesday.
Michael Saylor Reveals Strategy’s $1.5B Bond Buyback
Strategy bought back the entire face value of $1.5 billion of its 0% Convertible Senior Notes due 2029 for an average price of nearly $1.38 billion in cash. It is about an 8% discount from par value. The transaction eliminated a total outstanding convertible debt of $8.2 billion for Strategy compared to $6.7 billion.
At the same time, Strategy issued an additional $2 billion notional of its Variable Rate Series A Perpetual Stretch Preferred Stock and sold $84 million worth of Class A common stock. The funds collected went towards buying 24,869 Bitcoin, which Michael Saylor announced last week.
As of May 25, the company has 843,738 BTC in its portfolio and a cash reserve of $871 million, per its latest filing.
Executive Chairman Michael Saylor said, “These transactions demonstrate the optionality we have built into Strategy’s capital structure and our dynamic, multi-variate capital allocation model.”
Saylor added, “Strategy has the flexibility to fund strategic transactions using cash, Digital Equity, Digital Credit, or Digital Capital, giving us multiple levers to optimize our balance sheet and respond to market conditions.”
Strategy has completed the repurchase of $1.5 billion of its 2029 Convertible Notes at an ~8% discount to par, generating an incremental 0.7% BTC Yield and lowering aggregate debt to $6.7 billion. $MSTR $STRC https://t.co/cbx4BlpsKV
— Michael Saylor (@saylor) May 26, 2026
The debt repurchase produced a BTC Yield of 0.7%, a BTC Gain of 4,391 Bitcoin and a BTC dollar gain of $333 million, the company said. For context, Strategy’s year-to-date figures showed BTC Yield of 13.3% and BTC Gain of 89,378 Bitcoin.
What Do Other Executives Say?
President and CEO Phong Le quoted an earlier statement on the company’s first quarter earnings call. He said, “We said we would proactively manage our convertible debt and use the full range of capital management tools available to us, including the disciplined sale of Bitcoin.”
“We retired $1.5 billion of convertible debt for $1.38 billion in cash. Year to date, we have achieved BTC Yield of 13.3%. These actions reflect our continued focus on disciplined capital allocation,” Le said.
Chief Financial Officer Andrew Kang called the repurchase “both equity and credit positive for our investors.” Further, he said the Bitcoin treasury company is committed to maintain “a robust cash reserve to support the credit quality of our Digital Credit securities.”
Meanwhile, the MSTR stock shot up by 2.45% to 163.80 in the intraday trading session on Tuesday, May 26.
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