Strategy cuts net leverage to near zero as cash matches convertible debt

Michael Saylor’s firm has spent years accumulating Bitcoin with borrowed money, a strategy that made Strategy Inc. look either visionary or reckless depending on the week. Now, for the first time in that era, the company’s cash position nearly cancels out its entire debt load. As of August 23, 2026, Strategy held roughly $6.7 billion in total cash and reserves against approximately $6.7 billion in convertible debt, pushing net leverage to approximately zero percent. How the math got there The company sold around $2 billion worth of MSTR shares in the week leading up to the announcement, boosting its USD reserve to $5.1 billion and adding $1.59 billion in separate cash holdings. That single capital raise did most of the heavy lifting on the leverage reduction. Earlier in May 2026, Strategy also retired $1.5 billion in face value of its zero-coupon 2029 convertible notes, paying $1.38 billion to do it, an 8% discount to par. That buyback trimmed the total convertible debt load from $8.2 billion down to $6.7 billion, setting up the near-zero net leverage position that followed. Strategy’s convertible notes carry a blended coupon of roughly 0.5%. The company holds no traditional secure...