MicroStrategy Buys Back $1.5B Notes at 8% Discount, Cuts Debt to $6.7B

MicroStrategy, the largest corporate Bitcoin holder, has repurchased $1.5 billion of its 0% convertible senior notes due in 2029 for $1.38 billion in cash at an 8% discount to par. The transaction reduces the company's aggregate convertible notes outstanding from $8.2 billion to $6.7 billion.

The debt buyback was announced on Tuesday and completed using the company's cash reserves. MicroStrategy also reported an additional $15.5 billion in aggregate notional amount of outstanding preferred stock and a USD reserve of $871 million.

Buying back debt at a discount can strengthen the balance sheet by reducing future payment obligations. The action demonstrates active debt management from MicroStrategy, typically seen as a positive sign by shareholders.

Crypto industry watchers praised the debt buyback. André Dragosch, European head of research at asset management firm Bitwise, wrote that it was a “great move by Strategy,” adding that the debt reduction removes a “major uncertainty around the cash repayment wall in mid-2028,” as investors would likely demand repayment due to the relatively high conversion price of these notes, around $672.

While a reduction in outstanding debt is typically positive for shareholders, MicroStrategy’s stock price fell 3% in pre-market trading on Tuesday and was changing hands at above $159. The slide adds pressure to the company's declining share price, which fell 10% during the past month and 59% during the past year, according to data from Yahoo Finance.

The update comes after MicroStrategy did not announce a fresh Bitcoin purchase this week. It follows the company's $2.01 billion purchase the prior week of 24,869 BTC at an average purchasing price of $80,985 per BTC. The move was the company's third-largest investment of 2026.

Bitcoin’s price also fell by about 1.2% during the past month and by 29% over the past year, according to TradingView.