The strategy's net leverage is near zero as cash reserves approach the size of the convertible bonds.

ChainCatcher report: Strategy, the Bitcoin treasury company, has reached $6.69 billion in U.S. dollar assets, nearly matching its $6.75 billion in outstanding convertible bonds, reducing its net leverage to near zero. Driven by ongoing buybacks and Bitcoin’s price rebound to around $80,000, its preferred stock STRC has risen over 35% from its June low and is currently trading at $97.23, still below its $100 par value. Executive Chairman Michael Saylor stated that USD cash strengthens the company’s digital credit capital framework, specifically designed for Bitcoin treasury companies for general purposes—including increasing BTC holdings, paying preferred stock dividends and interest, repurchasing MSTR/preferred shares, repaying convertible bonds, and building U.S. dollar reserves. In May, Strategy repurchased $1.5 billion in convertible bonds maturing in 2029 to reduce its debt burden. Competitor Strive Asset Management eliminated all its debt earlier this year, and its preferred stock SATA has rebounded to its $100 par value, with recent share issuances via an ATM program last week. Analysts note that eliminating debt would strengthen STRC’s position in the capital structure, but sustained buybacks, ample U.S. dollar liquidity, and Bitcoin’s price recovery may provide more direct support for the preferred stock’s return to par value.