Strategy Inc. (NASDAQ:MSTR) completed a $1.5 billion debt repurchase last week, prompting gold advocate Peter Schiff to publicly question whether the company is running out of cash.
Strategy Bought Back Debt At 8% Discount, Added 24,869 Bitcoin
Strategy repurchased $1.5 billion of its 2029 convertible notes for approximately $1.38 billion in cash, an 8% discount to par value.
The transaction generated a Bitcoin (CRYPTO: BTC) gain of 4,391 coins and a dollar gain of $333 million, while lowering total convertible notes outstanding from $8.2 billion to $6.7 billion.
Alongside the debt repurchase, Strategy issued $2 billion of STRC preferred stock and $84 million of common stock, using those proceeds to purchase an additional 24,869 Bitcoin.
The company now holds 843,738 Bitcoin with a USD reserve of $871 million following the transactions.
Year-to-date, Strategy has achieved a BTC yield of 13.3%, a Bitcoin gain of 89,378 coins, and a dollar gain of $6.8 billion. The company described the moves as demonstrating the “optionality” built into its capital structure across cash, equity, credit, and Bitcoin.
Schiff Calls It A Cash Problem, Not A Capital Win
Schiff fired back on X immediately after Strategy’s announcement. “You’re running out of cash. What will you sell next to keep the wheels from falling off?” he posted, arguing the debt repurchase masked a growing liquidity problem rather than demonstrating financial strength.
Schiff also pointed to gold and silver miners outperforming on the day despite weakness in both metals.
“Meanwhile, CNBC wonders if the gold party is over while missing that the Bitcoin party already ended. That’s what real bottoms look like,” he posted, framing Bitcoin’s current price action as a structural top rather than a temporary pullback.
Saylor Now Pushing STRC Holders To Vote On Semi-Monthly Dividends
Separately, Saylor is urging STRC shareholders to approve a proposal shifting dividend payments from monthly to semi-monthly before the June 8 deadline.
The change keeps the annualized yield at 11.5% while doubling payout frequency, which Strategy says would reduce reinvestment lag and support price stability around the instrument’s $100 par value.
Both MSTR and STRC holders must approve the amendment for it to take effect. If passed, the first record date under the revised schedule falls on June 30.
STRC draws roughly 80% retail ownership, making payout frequency a direct income management question for most holders.
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