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Strategy, the Tysons Corner-based software and Bitcoin treasury firm previously known as MicroStrategy, submitted a Form 8-K on Friday, revealing intentions to repurchase $1.5 billion of its convertible notes maturing in 2029. This represents a significant balance sheet maneuver, occurring as the company’s preferred stock instrument, STRC, continues to draw unprecedented investor interest.
The announcement of the repurchase follows a day after STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, achieved a record-breaking daily trading volume of $1.53 billion on Thursday. This figure surpassed the previous high of $1.1 billion, which was established on April 13.
Executive Chairman Michael Saylor confirmed the achievement on X, labeling it an “all-time high volume” and interpreting the volume as an indicator of increasing institutional trust in the instrument.
STRC provides investors with an 11.5% annualized dividend without diluting Strategy’s common equity. Since its inception less than nine months ago, it has grown to a market capitalization of approximately $8.5 billion, positioning it as the world’s largest preferred stock by market capitalization.
Thursday’s trading activity could potentially enable Strategy to generate around $735.4 million through its at-the-market issuance facility, which would be sufficient to acquire approximately 9,066 Bitcoin at prevailing prices.
The repurchase of convertible notes adds another layer to Strategy’s ongoing efforts to reform its capital structure. The company has publicly articulated its aim to convert approximately $6 billion in convertible debt into equity over the next three to six years. Saylor has indicated that the firm can withstand Bitcoin prices as low as $8,000 before its assets and liabilities would reach parity.
The 2029 notes targeted in Friday’s filing are among the nearer maturities the company must manage as it executes this transition.
Strategy’s Bitcoin Investment Vehicles
Concurrently, STRC and MSTR shareholders are being solicited to vote on a separate yet related proposal: modifying the STRC dividend structure from monthly to bi-monthly payments.
The voting period for this amendment commenced on April 28 and will conclude on June 8. If approved, the initial semi-monthly dividend payment is anticipated on July 15. Saylor has described this modification as a method to “stabilize price, dampen cyclicality, drive liquidity, and grow demand,” ultimately aiming to establish STRC as what he has termed the “biggest credit instrument in the world.”
Strategy currently holds 818,869 Bitcoin, which were procured at a total expenditure of approximately $61.81 billion, averaging $75,537 per coin. The firm has acquired over 101,000 Bitcoin since March alone, with more than 56,770 of these acquisitions occurring post-April, as it continues to deploy capital from its preferred equity and at-the-market programs at an escalating rate.
Analysts at JPMorgan have forecasted that Strategy’s total Bitcoin acquisitions for 2026 could amount to $30 billion.
According to the portal: bitcoinmagazine.com