Strategy cuts net leverage to near zero as cash nearly matches convertible debt

Strategy, a bitcoin treasury company, has substantially de-leveraged its balance sheet, bringing net leverage near zero as cash holdings have grown to approximate its convertible debt load. This shift follows a multi-year capital management approach that prioritized debt reduction and shareholder returns.

The move reduces financial risk exposure and allows the firm to concentrate on bitcoin appreciation without the pressure of managing significant liabilities. Management has simultaneously maintained preferred-dividend coverage spanning nearly four years while continuing to repurchase its own stock at discounts to par value, signaling confidence in the company's valuation despite market conditions.

• Net leverage approaching zero improves financial resilience and removes debt-related constraints on bitcoin exposure.
• The company has built substantial preferred-dividend reserves while executing opportunistic share buybacks below par.
• The strategy reflects a longer-term capital allocation framework prioritizing balance-sheet strength over aggressive leverage plays.