Strategy Inc.'s Net Leverage Plummets to Near Zero Amid Crypto Holdings

Strategy Inc., Michael Saylor's firm, has made significant strides in reducing its net leverage to nearly zero. As of August 23, 2026, the company held approximately $6.7 billion in total cash and reserves against $6.7 billion in convertible debt. This move comes after Strategy sold $2 billion worth of MSTR shares in the week leading up to the announcement, boosting its USD reserve to $5.1 billion.

The company also retired $1.5 billion in face value of its zero-coupon 2029 convertible notes at an 8% discount to par, trimming the total convertible debt load from $8.2 billion down to $6.7 billion. This reduction set up the near-zero net leverage position that followed.

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.

Strategy 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.