CoinDesk
Strategy's $6.69 billion in dollar assets now nearly matches its $6.75 billion in outstanding convertible debt, putting net leverage at almost zero. The bitcoin treasury company has stacked roughly four years of preferred-dividend coverage into its balance sheet while continuing to buy back its STRC preferred below par. The buildup reflects months of deliberate capital raising designed to shore up the dollar reserve that supports about $1.7 billion in annual preferred dividends.
Why it matters
Net leverage near zero reshapes the conversation around Strategy's preferred stack. STRC, the company's variable-rate perpetual preferred, has rallied more than 35% from its June low to $97.23, supported by both bitcoin's recovery toward $80,000 and Strategy's ongoing buybacks below par. With cash now matching convertibles dollar-for-dollar, the company has more flexibility to retire 2029-maturity debt, push STRC toward $100 par, or keep stacking BTC without raising fresh preferred.
Executive chairman Michael Saylor framed the cash reserve as part of the Digital Credit Capital Framework, separately designated for acquiring BTC, paying preferred dividends and interest, repurchasing MSTR or preferred stock, repaying converts, and topping up the dollar reserve.
Market impact
The setup mirrors rival Strive, whose SATA perpetual preferred has returned to its $100 par and reopened the company's at-the-market (ATM) issuance window last week. For STRC, a return to par would unlock a similar funding runway. Strategy already trimmed its debt load in May by repurchasing $1.5 billion of convertibles due 2029, and continued buybacks plus bitcoin's price recovery could push the preferred over par in the coming weeks.
The math: $5.1 billion of the cash sits in the dollar reserve covering roughly four years of dividends, while another $1.59 billion sits in a more flexible cash pool deployable for acquisitions, repayments, or further preferred repurchases. With BTC trading back near $80,000 and Strategy's bitcoin hoard sitting around $66 billion, the structural case for the preferred is tightening.
Frequently asked questions
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How did Strategy cut its net leverage to near zero?
Strategy built $6.69 billion in dollar assets, nearly matching its $6.75 billion in outstanding convertible debt. The reserve grew through months of capital raises designed to back its preferred-dividend obligations.
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What is Strategy's STRC preferred stock?
STRC is Strategy's variable-rate perpetual preferred. It rallied more than 35% from its June low to $97.23, supported by bitcoin's recovery toward $80,000 and Strategy's ongoing buybacks below par.
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How many years of preferred-dividend coverage does Strategy now have?
Strategy's $5.1 billion dollar reserve covers roughly four years of the approximately $1.7 billion in annual preferred-stock dividends. An additional $1.59 billion sits in a flexible cash pool.
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How does Strategy's situation compare to rival Strive?
Strive's SATA perpetual preferred has returned to its $100 par, allowing the company to reopen its at-the-market (ATM) issuance program last week. STRC reaching par would give Strategy a similar funding runway.
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What could push STRC back to par in the near term?
Continued buybacks below par, bitcoin's price recovery toward $80,000, and ample dollar liquidity could push the preferred over par in the coming weeks. Strategy also retired $1.5 billion of 2029-maturity convertibles in May.
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