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

Michael Saylor’s firm has spent years accumulating Bitcoin with borrowed money, a strategy that made Strategy Inc. look either visionary or reckless depending on the week. Now, for the first time in that era, the company’s cash position nearly cancels out its entire debt load.

As of August 23, 2026, Strategy held roughly $6.7 billion in total cash and reserves against approximately $6.7 billion in convertible debt, pushing net leverage to approximately zero percent.

How the math got there

The company sold around $2 billion worth of MSTR shares in the week leading up to the announcement, boosting its USD reserve to $5.1 billion and adding $1.59 billion in separate cash holdings. That single capital raise did most of the heavy lifting on the leverage reduction.

Earlier in May 2026, Strategy also retired $1.5 billion in face value of its zero-coupon 2029 convertible notes, paying $1.38 billion to do it, an 8% discount to par. That buyback trimmed the total convertible debt load from $8.2 billion down to $6.7 billion, setting up the near-zero net leverage position that followed.

Strategy’s convertible notes carry a blended coupon of roughly 0.5%. The company holds no traditional secured debt, meaning there are no margin-call triggers that could force a Bitcoin sale if prices drop sharply.

What 840,000 BTC looks like on a balance sheet

Strategy now holds more than 840,000 Bitcoin, representing roughly 4% of the total supply that will ever exist.

The company has framed its net leverage figure as reflecting “net” Bitcoin exposure after accounting for senior claims, meaning the cash and debt roughly offset, leaving the Bitcoin holdings as the unencumbered core of the enterprise. In practice, this means equity holders are now exposed to Bitcoin price movement without the amplifying effect of significant net debt.

Reading the strategic signal

Strategy did not reduce leverage because it was forced to. The company made a deliberate choice to raise equity capital and retire debt at a discount, trading some shareholder dilution for a meaningfully safer capital structure.

The equity market’s continued willingness to absorb $2 billion in new MSTR shares signals that institutional demand for Strategy’s equity remains robust enough to fund major capital operations without a pricing crisis.

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