Strategy Inc. (NASDAQ: MSTR) completed a $1.5 billion debt repurchase last week, drawing sharp criticism from gold advocate Peter Schiff over the company’s cash position.
Strategy repurchased $1.5 billion of its 2029 convertible notes for approximately $1.38 billion in cash, representing an 8% discount to par value.
The transaction generated a Bitcoin gain of 4,391 coins and a dollar gain of $333 million, reducing 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 completion of both 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 responded immediately on X, posting: “You’re running out of cash. What will you sell next to keep the wheels from falling off?” arguing the repurchase masked a liquidity problem rather than demonstrated financial strength.
Schiff also pointed to gold and silver miners outperforming on the day despite weakness in both metals, posting: “Meanwhile, CNBC wonders if the gold party is over while missing that the Bitcoin party already ended. That’s what real bottoms look like.”
Separately, Strategy co-founder Michael Saylor is urging STRC shareholders to approve a proposal shifting dividend payments from monthly to semi-monthly before a 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, with the first record date under the revised schedule falling on June 30 if passed.
STRC draws roughly 80% retail ownership, making payout frequency a direct income management question for the majority of holders.
