MicroStrategy (MSTR) to Repurchase $1.5B in 2029 Convertible Notes as STRC Preferred Stock Hits Record $1.53B Daily Volume

MicroStrategy Announces $1.5B Convertible Note Repurchase Amid STRC Trading Surge

MicroStrategy (NASDAQ: MSTR), the Tysons Corner-based software and Bitcoin treasury firm formerly known as Strategy, filed a Form 8-K on Friday detailing plans to repurchase $1.5 billion of its 2029 convertible notes. The announcement coincides with a historic surge in trading activity for the company’s preferred stock instrument, STRC.

Record-Breaking STRC Trading Volume

On Thursday, STRC—MicroStrategy’s Variable Rate Series A Perpetual Stretch Preferred Stock—recorded an all-time high daily trading volume of $1.53 billion, surpassing the prior record of $1.1 billion set on April 13.

Executive Chairman Michael Saylor confirmed the milestone on X (formerly Twitter), calling it “all-time high volume” and describing the print as a signal of growing institutional confidence in the instrument.

STRC’s Rapid Growth and Market Cap

Since its launch less than nine months ago, STRC has grown to approximately $8.5 billion in market capitalization, making it the world’s largest preferred stock by market cap. The instrument pays investors an 11.5% annualized dividend without diluting MicroStrategy’s common equity.

Potential Bitcoin Acquisition from STRC Trading

Thursday’s trading activity could allow MicroStrategy to raise roughly $735.4 million through its at-the-market issuance structure. At current Bitcoin prices, this amount would be sufficient to purchase approximately 9,066 Bitcoin.

Capital Restructuring and Long-Term Strategy

The convertible note repurchase is part of MicroStrategy’s broader effort to restructure its capital stack. The company has publicly stated its intent to convert roughly $6 billion in convertible debt to equity over the next three to six years.

Saylor has previously indicated that MicroStrategy can withstand Bitcoin prices as low as $8,000 before its assets and debt would reach parity.

The 2029 notes targeted in Friday’s filing represent one of the nearer maturities the company will need to manage as it executes this transition.

STRC Dividend Structure Amendment Proposal

MicroStrategy shareholders are also being asked to vote on a separate proposal: amending the STRC dividend structure from monthly to semi-monthly payments.

Voting on the amendment opened on April 28 and closes on June 8. If approved, the first semi-monthly payment is expected on July 15.

Saylor has framed the change as a way to “stabilize price, dampen cyclicality, drive liquidity, and grow demand” while positioning STRC as what he calls the “biggest credit instrument in the world.”

MicroStrategy’s Bitcoin Holdings and Future Projections

MicroStrategy currently holds 818,869 Bitcoin, acquired at a total cost of approximately $61.81 billion, or an average price of $75,537 per coin. Since March, the firm has accumulated over 101,000 Bitcoin, with more than 56,770 of those purchases occurring after April.

JPMorgan analysts have projected that MicroStrategy’s total Bitcoin purchases for 2026 could reach $30 billion.