Bitcoin treasury company Strategy has built its dollar assets to $6.69 billion, bringing them close to its $6.75 billion in outstanding convertible notes and pushing net leverage to near zero. The balance sheet shift comes as the company continues buybacks and as Bitcoin has recovered to around $80,000. Its preferred stock, STRC, has rebounded more than 35% from its June low and was last quoted at $97.23, still below its $100 par value. Executive Chairman Michael Saylor said USD Cash strengthens the company’s digital credit capital framework and is intended for general purposes tied to the bitcoin treasury model. Those uses include buying more BTC, paying preferred dividends and interest, repurchasing MSTR and preferred shares, repaying convertible debt, and increasing dollar reserves. In May, Strategy bought back $1.5 billion of convertible notes due in 2029 to reduce its debt burden. Rival Strive Asset Management had already eliminated all debt earlier this year, while its preferred stock SATA has recovered to par and issued additional shares through an ATM program last week. The analysis cited in the report said debt elimination would strengthen STRC’s position in the capital structure, though ongoing buybacks, ample dollar liquidity, and a rebound in Bitcoin may offer more direct support for a return to par.
Strategy, a bitcoin treasury company, has raised its dollar assets to $6.69 billion, nearly matching its $6.75 billion in outstanding convertible notes, according to ChainCatcher. That has brought the company’s net leverage close to zero.
The move has coincided with ongoing buybacks and a recovery in Bitcoin to around $80,000. Strategy’s preferred stock, STRC, has rebounded more than 35% from its June low and was last quoted at $97.23, still below its $100 par value.
USD Cash earmarked for treasury and liability management
Executive Chairman Michael Saylor said USD Cash has strengthened the company’s digital credit capital framework and is designed for general purposes related to a bitcoin treasury company. He said the funds can be used to accumulate more BTC, pay preferred dividends and interest, repurchase MSTR and preferred shares, repay convertible debt, and build additional dollar reserves.
Debt reduction and peer comparison
In May, Strategy repurchased $1.5 billion of convertible notes due in 2029 as part of efforts to reduce its debt burden.
Competitor Strive Asset Management had already eliminated all of its debt earlier this year. Its preferred stock, SATA, has recovered to its $100 par value and the company issued additional shares through an ATM program last week.
The analysis cited in the report said removing debt would strengthen STRC’s place in the capital structure. It added that continued buybacks, strong dollar liquidity, and Bitcoin’s rebound may provide more direct support for the preferred stock to move back toward par.
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