Strategy, the company formerly known as MicroStrategy, has unveiled a plan to repurchase up to $1 billion of its digital credit securities. The move comes on the heels of a recent $1.5 billion buyback of convertible notes that the firm snagged at roughly an 8% discount, paying just $1.38 billion in cash for the privilege.

For a company sitting on 843,738 BTC, the signal here is clear: Strategy would rather retire its own debt than sell a single satoshi.

What “digital credit securities” actually means

Strategy has been rebranding its financial instruments, lumping its convertible notes, preferred stock, and other debt products under the umbrella term “digital credit securities.” The recent $1.5 billion repurchase targeted the company’s 0% Convertible Senior Notes due 2029. Those are bonds that pay no interest and can be converted into equity at a set price. By buying them back at a discount, Strategy effectively reduced its future obligations for less than face value.

After the deal closed between May 11 and May 25, 2026, Strategy’s total outstanding convertible notes dropped from $8.2 billion to $6.7 billion. The company still has $15.5 billion in aggregate notional preferred stock outstanding.

The numbers behind the strategy

As of May 25, 2026, Strategy holds 843,738 BTC in reserve alongside $871 million in USD cash. The company funded the $1.38 billion repurchase entirely from cash reserves, meaning it didn’t need to liquidate any Bitcoin or issue new equity to cover the cost.

The company’s year-to-date Bitcoin yield stands at 13.3% following these capital actions. That metric, which Strategy uses to measure the growth in BTC per share, has become one of the firm’s preferred scorecards for investor communication.

Why Strategy keeps buying back its own paper

When you retire $1 billion of obligations for, say, $920 million, that $80 million gap flows through as a gain. It improves your balance sheet ratios and reduces future dilution risk from convertible notes.

Strategy has issued a range of instruments including zero-coupon convertibles and perpetual preferred stock like STRC, which offers yield-bearing exposure to investors who want Bitcoin proximity without the volatility of holding BTC directly.

Strategy’s $871 million cash reserve is modest relative to its $6.7 billion in remaining convertible notes and $15.5 billion in preferred stock. A prolonged Bitcoin downturn would pressure those ratios in the other direction.