Strategy trims net debt by $8B, boosts dollar liquidity

Strategy reduced net debt by about $8 billion over 11 months and raised its dollar liquidity to $6.54 billion, altering its short-term funding profile and creating pressure on S&P Global Ratings’ B- issuer credit rating.

Dollar liquidity rose from $54 million on Sept. 30, 2025, to $6.54 billion on Sept. 7, 2026. Regulatory filings split the total into a $5.10 billion USD Reserve earmarked for preferred dividends and interest and $1.44 billion of USD Cash available for Bitcoin purchases, security repurchases and other capital uses.

The company repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May, paying about $1.38 billion, roughly an 8% discount to par. Convertible debt fell to $6.71 billion from $8.21 billion, and net debt dropped from about $8.16 billion after the third quarter of 2025 to roughly $174 million as of Sept. 7.

From January through August 2026, Strategy raised about $21 billion across common and preferred equity, including $3.6 billion in August, while Bitcoin’s price fell more than 30% earlier in the year to below $60,000 and later recovered near $80,000.

S&P assigned a B- issuer credit rating in October 2025 and affirmed it with a stable outlook in December 2025. The grade is six notches below investment grade. S&P has said it could downgrade the company if weaker Bitcoin prices impaired its ability to raise capital or increased the risk that out-of-the-money convertible debt could not be managed. S&P’s criteria for an upgrade include stronger dollar liquidity, reduced reliance on convertible debt and continued capital-market access during periods of Bitcoin stress. The agency also said in October 2025 that an upgrade was unlikely within 12 months, a window that runs through late October 2026.

As of Sept. 9, Strategy held 845,050 BTC acquired for about $63.73 billion at an average price near $75,412 per coin. The company still carries billions of dollars of perpetual preferred stock with dividend commitments that remain part of its dollar obligations. Filings show the USD Reserve and cash were structured to cover interest and preferred dividends for several years without relying on Bitcoin sales.

Chaitanya Jain, head of investor relations, commented: “More liquidity. Less debt. Continued funding access. Any rating upgrade remains S&P’s decision.” S&P will reassess the company’s creditworthiness based on whether Strategy maintains capital-market access and dollar liquidity through potential periods of Bitcoin volatility.