Strategy Targets $1.5B Debt Buyback as STRC Trading Frenzy Accelerates
Strategy is moving deeper into its long-term capital restructuring plan after announcing a proposed $1.5 billion repurchase of its 2029 convertible notes, a move that arrives amid explosive investor interest in the company’s STRC preferred stock product.
The Bitcoin treasury firm, previously known as MicroStrategy, disclosed the planned buyback in a Friday Form 8-K filing, signaling continued efforts to optimize its debt profile while leaning on strong market demand for its income-focused securities.
The announcement follows a record-setting session for STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, which generated $1.53 billion in trading volume on Thursday — the highest daily total since launch. The previous peak of $1.1 billion was recorded in April.
Executive Chairman Michael Saylor highlighted the milestone on social platform X, describing the surge in activity as evidence of growing institutional appetite for the instrument.
STRC currently offers an annualized dividend yield of 11.5% while avoiding dilution to Strategy’s common shareholders. Since debuting less than a year ago, the preferred stock has expanded to an estimated $8.5 billion market capitalization, making it one of the largest preferred equity products globally.
Based on Thursday’s trading levels, Strategy could potentially unlock more than $735 million through its at-the-market issuance program, enough to acquire over 9,000 additional Bitcoin at prevailing market prices.
The convertible note repurchase also aligns with the company’s broader objective of gradually transitioning billions of dollars in debt into equity over the next several years. Strategy has previously outlined plans to convert roughly $6 billion in convertible obligations as part of its evolving financing strategy.
Saylor has maintained confidence in the company’s resilience even during severe market downturns, previously stating that Bitcoin prices could fall dramatically before Strategy’s asset base would approach parity with its liabilities.
At the same time, shareholders are preparing to vote on changes to STRC’s dividend payment schedule. The proposal would shift distributions from monthly to semi-monthly payouts, with voting scheduled to conclude on June 8. If approved, the revised payment structure would begin in mid-July.
According to company leadership, the adjustment is designed to improve liquidity, reduce volatility, and strengthen investor demand as Strategy pushes to expand STRC into a dominant global credit-style instrument.
Strategy’s Bitcoin holdings now stand at 818,869 BTC acquired for roughly $61.8 billion at an average purchase price near $75,500 per coin. The company has accelerated purchases in recent months, adding more than 101,000 BTC since March as it continues deploying proceeds from equity and preferred stock offerings.
Analysts at JPMorgan Chase have estimated Strategy’s Bitcoin acquisitions in 2026 alone could total as much as $30 billion.