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 servic...