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Strategy Resumes Bitcoin Purchases and Says Net Leverage Is Zero

The company says equity raises and a rebuilt dollar reserve let it buy 4,603 BTC and materially lower the risk that creditors could force sales.

Overview

  • Strategy disclosed on Aug. 31 that it bought 4,603 BTC for about $369.7 million, raising its reported holdings to 845,050 BTC.
  • The purchase followed a summer program of modest BTC sales and roughly $2 billion in recent common‑share issuance that boosted dollar liquidity to about $6.7 billion.
  • The board in June approved a monetization framework that allows up to $1.25 billion of discretionary Bitcoin sales to build a designated USD reserve and fund obligations.
  • CEO Phong Le says the firm now follows a two‑way, cost‑of‑capital treasury policy that buys or sells Bitcoin based on financing economics rather than spot price.
  • Management argues the cash cushion roughly matches outstanding convertible debt so net leverage is effectively 0.0%, which lowers the chance creditors could force Bitcoin liquidations but leaves preferred dividends and other obligations as ongoing cash demands.