MicroStrategy repurchased $1.5 billion in convertible notes in May to reduce its debt load. This move drained cash reserves that investors viewed as a backstop for preferred-stock dividends. The company holds 847,363 BTC, representing over 4% of the total bitcoin supply, worth approximately $51 billion. Additionally, its USD reserve has surpassed $2.5 billion. The company launched a Digital Credit Capital Framework to manage its balance sheet and financing risks, providing $3.8 billion in liquidity.
Strategy announced a Digital Credit Capital Framework providing $3.8 billion in liquidity to manage balance sheet risks and authorized up to $2 billion in share repurchases.
Read the full storyStrategy's new announcement of a $2 billion buyback program—double the previously reported $1 billion—escalates its dramatic shift from accumulation doctrine to a flexible model allowing bitcoin sales.
MicroStrategy spent $1.5 billion to repurchase convertible notes to deleverage, raising investor concerns over cash reserves for preferred-stock dividends.