Strategy (MSTR) Files To Repurchase $1.5B In 2029 Convertible Notes As STRC Hits Record $1.53B Daily Volume

Strategy, based in Tysons Corner, filed a Form 8-K announcing a plan to repurchase $1.5 billion of convertible notes due in 2029. The repurchase plan follows record demand for STRC, a variable rate perpetual stretch preferred stock. STRC recorded an all-time high daily trading volume of $1.53 billion, exceeding the prior record of $1.1 billion. STRC pays an 11.5% annualized dividend without diluting Strategy’s common equity and has grown to about $8.5 billion in market capitalization since launching less than nine months ago. The trading activity could enable additional capital raising through an at-the-market structure. The note repurchase supports Strategy’s broader capital stack restructuring, including converting about $6 billion of convertible debt to equity over three to six years.

"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."

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