Strategy Erases $8B of Net Debt in 11 Months, Seeks Junk Rating Upgrade
Strategy, the largest Bitcoin treasury firm, has made significant strides in strengthening its balance sheet. In just 11 months, the company erased nearly $8 billion of net debt and built up a substantial dollar liquidity cushion.
The company's head of investor relations, Chaitanya Jain, pointed out that Strategy has addressed three areas previously identified by S&P Global Ratings as potential paths to an upgrade: dollar liquidity, convertible debt, and capital-market access during Bitcoin stress.
Strategy's dollar liquidity has increased dramatically from $54 million in September 2025 to $6.54 billion as of September 7, providing a cushion against its payment obligations. This liquidity is earmarked for preferred dividends and interest, as well as potential Bitcoin purchases or security repurchases.
The company has also reduced its convertible debt from $8.21 billion to $6.71 billion after repurchasing $1.5 billion of its 0% convertible senior notes due 2029 in May. This has significantly decreased the company's net debt, which now stands at around $174 million.
Jain noted that despite the significant improvements, Strategy still faces a major hurdle: its exposure to Bitcoin. The company holds approximately 845,050 BTC acquired for $63.73 billion at an average price of about $75,412 per coin, leaving much of its balance sheet vulnerable to sharp drawdowns.