Overview
- In May Strategy repurchased $1.5 billion of zero‑coupon convertible notes for about $1.38 billion in cash, lowering converts outstanding from $8.2 billion to $6.7 billion.
- The buyback drew down the firm’s U.S. dollar reserve to roughly $871 million, which now covers about six months of its roughly $1.7 billion annual preferred‑dividend obligations.
- On May 29 on‑chain trackers recorded a transfer of 411.48 BTC to Coinbase Prime, a custody move that market participants say has raised the odds the company could sell some coins though no sale has been confirmed.
- Markets have reacted: MSTR shares have fallen since mid‑May and STRC has traded below par, while commentators including Arca CIO Jeff Dorman warned the cash drawdown increases short‑term funding risk.
- Management says it still aims to grow Bitcoin per share and can use cash, further STRC or common‑stock issuance, or selective Bitcoin sales to raise funds, but each option would affect shareholders, preferred holders, and Bitcoin prices in different ways.