Strategy nears zero net leverage with $6.69B in dollar liquidity

Strategy has effectively reduced its net leverage to near zero by building $6.69 billion in dollar liquidity, CoinDesk reported. The company calculates net leverage by comparing its roughly $67.5 billion in debt minus dollar-denominated assets with its $66 billion in BTC holdings. With dollar liquidity approaching its debt load, Strategy’s net debt burden relative to its BTC holdings has fallen sharply. The company has recently focused not only on buying more Bitcoin but also on securing dollar liquidity. Its dollar reserves rose to $5.1 billion, enough to cover about $1.7 billion in annual preferred stock dividends for roughly four years. It has also set aside $1.59 billion in cash that can be deployed as needed. Executive Chairman Michael Saylor said the cash could be used for additional BTC purchases, preferred dividend and interest payments, share buybacks, convertible bond repayments and expanding dollar reserves.