Strategy Cuts Net Leverage to Near Zero

Strategy has evolved from an enterprise software company into the world’s largest institutional holder of bitcoin since adopting the cryptocurrency as its primary treasury reserve asset in 2020. Its ambitions now extend beyond accumulating bitcoin to issuing Digital Credit securities and yield products. That shift makes dependable cash flow, liquidity and dividend coverage increasingly important for traditional investors who may want bitcoin-linked returns without taking the asset’s full volatility.

Chief Executive Officer Phong Le said on August 11, 2026, that Strategy had built a $4.75 billion cash cushion, enough to cover about 2.7 years of dividend payments. Le said bitcoin ownership alone was insufficient for conventional investors, who place greater weight on liquidity and predictable cash distributions. The reserve forms part of Strategy’s effort to expand its Digital Credit business and develop lower-volatility, bitcoin-linked yield products for a broader pool of institutional capital.

Strategy has made Bitcoin the center of its treasury policy since 2020, with co-founder and Executive Chairman Michael Saylor funding purchases through common stock, convertible debt and preferred shares. The model magnified gains when Bitcoin rose but also tied the company’s balance sheet to crypto volatility and created recurring dividend and interest costs. Building a dollar reserve therefore marks a shift from Saylor’s near “100% bitcoin” posture, giving Strategy more room to meet obligations and manage capital without becoming a forced seller.

Strategy on July 30 reported a second-quarter net loss of $8.22 billion, including $8.32 billion in digital-asset losses. As of July 26, it held 843,775 Bitcoin and had lifted its USD Reserve to $3.75 billion, enough for about 2.1 years of preferred dividends and debt interest. TD Cowen and Benchmark reiterated Buy ratings with price targets of $260 and $570, respectively, endorsing the added liquidity and balance-sheet discipline as Saylor broadens the company’s playbook beyond one-way Bitcoin accumulation.

Strategy, formerly MicroStrategy, has used equity and debt financing to accumulate bitcoin since 2020, turning the software company into the world’s largest corporate holder of the cryptocurrency. The strategy ties its market value closely to bitcoin while creating recurring obligations from preferred shares and borrowings. Its decision to build a U.S. dollar reserve, established on Dec. 1, 2025, is therefore important: it gives the company liquidity to cover dividends and interest without selling bitcoin during market stress.

Strategy said on July 27, 2026, that it sold 5,429,160 MSTR common shares through its at-the-market program from July 20 through July 26, raising $544.5 million in net proceeds. It added $525 million to its USD Reserve, lifting the balance to $3.75 billion, enough to cover 2.1 years of preferred dividends and debt interest. The company made no bitcoin purchase for a fifth straight week, leaving holdings at 843,775 BTC; its last disclosed purchase was 520 BTC for $35 million on June 22.

Strategy, formerly known as MicroStrategy, has made Bitcoin the centerpiece of its treasury strategy, funding the position through common stock, preferred securities and other capital-market instruments. Its U.S. dollar reserve is intended to help cover preferred dividends and debt-related obligations while preserving flexibility during volatile markets. The approach gives investors leveraged exposure to Bitcoin, though repeated equity issuance can dilute existing shareholders.

The company sold 2,732,318 MSTR shares through its at-the-market program from July 13 to July 19, 2026, generating $263.5 million in net proceeds. Strategy added $225 million to its dollar reserve, lifting the balance to $3.225 billion as of July 19. It neither bought nor sold Bitcoin during the week, marking a second consecutive pause, and retained 843,775 BTC acquired for about $63.69 billion, or an average $75,476 per coin.