Michael Saylor's Strategy, the largest corporate Bitcoin holder, has repurchased $1.5 billion of its 0% convertible senior notes due in 2029 for $1.38 billion at an 8% discount. The move reduces the company's outstanding debt from $8.2 billion to $6.7 billion.
The notes were bought using cash reserves. The company also holds $15.5 billion in preferred stock and $871 million in USD reserves.
Buying back debt at a discount strengthens the balance sheet by lowering future payment obligations-a move typically viewed positively by shareholders. Industry watchers praised the decision, noting it reduces uncertainty about a potential cash repayment wall in mid-2028.
Despite the positive debt management, Strategy's stock fell 3% in pre-market trading to around $159. The slide adds to a broader decline: MSTR down 10% over the past month and 59% over the past year. Bitcoin also fell about 1.2% over the past month and 29% over the past year.
The buyback follows Strategy's third-largest Bitcoin purchase of 2026 last week-24,869 BTC for $2.01 billion at an average price of $80,985 per BTC.