Strategy, the Tysons Corner-based software and Bitcoin treasury firm formerly known as MicroStrategy, filed a Form 8-K on Friday announcing plans to repurchase $1.5 billion of its convertible notes due 2029 — a significant balance sheet move that comes as the company’s preferred stock instrument, STRC, continues to attract record investor demand.
The repurchase announcement arrives one day after STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, recorded an all-time high daily trading volume of $1.53 billion on Thursday, surpassing the prior record of $1.1 billion set on April 13.
Executive Chairman Michael Saylor confirmed the milestone on X, calling it “all-time high volume” and describing the print as a signal of growing institutional confidence in the instrument.
STRC pays investors an 11.5% annualized dividend without diluting Strategy’s common equity and has grown to approximately $8.5 billion in market capitalization since launching less than nine months ago, making it the world’s largest preferred stock by market cap.
Thursday’s trading activity could theoretically allow Strategy to raise roughly $735.4 million through its at-the-market issuance structure — sufficient to purchase approximately 9,066 Bitcoin at current prices.
The convertible note repurchase adds another dimension to Strategy’s ongoing effort to restructure its capital stack. The company has publicly stated its intent to convert roughly $6 billion in convertible debt to equity over the next three to six years, with Saylor signaling the firm can withstand Bitcoin prices as low as $8,000 before its assets and debt would be at parity.
The 2029 notes being targeted in Friday’s filing represent one of the nearer maturities the company will need to manage as it executes that transition.
Strategy’s bitcoin investment vehicles
Meanwhile, STRC and MSTR shareholders are also being asked to vote on a separate but related proposal: amending the STRC dividend structure from monthly to semi-monthly payments.
Voting on the amendment opened on April 28 and closes June 8, with the first semi-monthly payment expected on July 15 if approved. Saylor has framed the change as a way to “stabilize price, dampen cyclicality, drive liquidity, and grow demand” — and ultimately to position STRC as what he has called the “biggest credit instrument in the world.”
Strategy currently holds 818,869 Bitcoin acquired at a total cost of approximately $61.81 billion, or an average price of $75,537 per coin. The firm has accumulated over 101,000 Bitcoin since March alone, with more than 56,770 of those purchases occurring after April, as it continues to deploy capital from its preferred equity and at-the-market programs at an accelerating pace.
JPMorgan analysts have projected Strategy’s total Bitcoin purchases for 2026 could reach $30 billion.