Strategy reduces net leverage to near zero with 6.69 billion dollars in liquidity

Strategy has reduced its net leverage to near zero, achieving 6.69 billion dollars in dollar liquidity. The company calculates net leverage by comparing its approximately 67.5 billion dollars in debt minus dollar-denominated assets with its 66 billion dollars in BTC holdings. As dollar liquidity approaches its debt load, Strategy's net debt burden relative to its BTC holdings has significantly decreased. Recently, the company has focused on both acquiring more Bitcoin and securing dollar liquidity. Its dollar reserves have increased to 5.1 billion dollars, sufficient to cover about 1.7 billion dollars in annual preferred stock dividends for roughly four years. Additionally, it has set aside 1.59 billion dollars in cash for deployment as needed. Executive Chairman Michael Saylor indicated that the cash could be utilized for further BTC purchases, preferred dividend and interest payments, share buybacks, convertible bond repayments, and expanding dollar reserves.

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