Strategy, the Tysons Corner-based software and Bitcoin tax company formerly known as MicroStrategy, filed a Form 8-K on Friday announcing plans to buy back $1.5 billion of its convertible notes due 2029 — a major balance sheet move that comes as the company’s preferred equity instrument, STRC, continues to attract record investor demand.
The buyback announcement comes a day after STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, posted a record daily trading volume of $1.53 billion on Thursday, surpassing the previous record of $1.1 billion set on April 13.
Executive Chair Michael Saylor confirmed the milestone at X, calling it “an all-time high volume” and describing the print as a signal of growing institutional confidence in the instrument.
STRC pays investors an 11.5% annual 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 capitalization.
Thursday’s trading activity could theoretically allow Strategy to raise about $735.4 million through its issuance structure on the market — enough to buy approximately 9,066 Bitcoins at current prices.
The buyback of convertible notes adds another dimension to Strategy’s ongoing efforts to restructure its capital stack. The company has publicly stated its intention to convert about $6 billion in convertible debt to equity over the next three to six years, with Saylor signaling that the firm can withstand Bitcoin prices as low as $8,000 before its assets and debt will be at parity.
The 2029 notes targeted in Friday’s filing represent one of the closer maturities the company will have to manage as it executes this transition.
The strategy’s bitcoin investment instruments
Meanwhile, STRC and MSTR shareholders are also being asked to vote on a separate but related proposal: changing the STRC dividend structure from monthly to semi-monthly payments.
Voting on the change opened on April 28 and will end on 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 increase demand” — and ultimately position STRC as what he has called the “largest credit instrument in the world.”
The strategy currently holds 818,869 Bitcoins acquired at a total price of approximately $61.81 billion, or an average price of $75,537 per coin. The firm has accumulated over 101,000 Bitcoins 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 market programs at an accelerating pace.
JPMorgan analysts have predicted that Strategy’s total Bitcoin purchases for 2026 could reach $30 billion.