Strategy Cuts Debt by $1.5B as Bitcoin Treasury Moves Continue

Michael Saylor’s Strategy has repurchased $1.5 billion worth of its 0% convertible senior notes due in 2029 for $1.38 billion in cash, securing an 8% discount to par value. The buyback reduces outstanding convertible debt from $8.2 billion to $6.7 billion, significantly lowering future repayment pressure.

The company said the repurchase was funded using internal cash reserves, marking a clear move to strengthen its balance sheet while continuing its Bitcoin focused strategy.

Balance Sheet Strengthened With Lower Debt Exposure

Alongside the debt reduction, Strategy reported $15.5 billion in outstanding preferred stock and a USD reserve of $871 million. The company noted that reducing convertible notes helps lower long-term financial risk and improves capital structure flexibility.

Market observers said the move reduces concerns around a potential “repayment wall” tied to 2028–2029 obligations, which had been viewed as a key risk for investors.

Bitcoin Buying Pauses After Major Acquisition

The update came after Strategy did not announce a new Bitcoin purchase this week, following a $2.01 billion acquisition of 24,869 BTC earlier in May. Meanwhile, smaller Bitcoin treasury firms collectively bought about 602.6 BTC during the same period.

Despite the debt reduction, Strategy shares fell around 3% in pre-market trading, extending recent weakness in both the company’s stock and Bitcoin over the past month.