Strategy’s net leverage drops to 3% as capital raising accelerates

Strategy Inc., the company formerly known as MicroStrategy that has essentially become a publicly traded Bitcoin vault, has pushed its net leverage ratio down to just 3.21%. For a company sitting on more than 840,000 Bitcoin, that’s a remarkably thin layer of debt relative to assets.

The numbers behind the low leverage

Strategy’s balance sheet tells an unusual story. Total debt sits at $6.754B, while preferred equity accounts for $15.101B. The company’s market capitalization is approximately $44.451B, putting its enterprise value in the neighborhood of $61.51B.

Strategy now holds 840,447 BTC, roughly 4% of all Bitcoin that will ever exist. Annual interest and dividend obligations run to $1.719B, with the company operating at a treasury leverage multiple of 1.39x.

How Strategy keeps the leverage low while buying more Bitcoin

Strategy has been raising capital predominantly through equity and equity-like instruments rather than piling on traditional debt. ATM equity programs let the company sell shares directly into the market in measured amounts. Convertible debt adds optionality: if the stock rises, holders convert to equity and the debt evaporates; if it doesn’t, the company services the notes at relatively low interest rates.

Preferred stock issuance has been another major lever. At $15.101B, Strategy’s preferred equity outstanding actually exceeds its total debt by more than double. The stock currently trades at roughly 1.02x its modified net asset value.

What this means for investors and the broader market

The $1.719B in annual interest and dividends still needs to be serviced regardless of where Bitcoin trades. If BTC enters a prolonged bear market, the company’s ability to raise fresh equity at attractive prices diminishes, potentially forcing it to tap debt markets on less favorable terms or slow its accumulation entirely.

With 4% of total Bitcoin supply locked in a single corporate treasury, Strategy’s buying and selling decisions carry outsized market impact. Any indication that the company might slow purchases, or worse, begin selling, could ripple through Bitcoin markets in ways that go well beyond what the dollar amounts alone would suggest.

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