Strategy cuts net debt to $174 million, builds $6.54 billion liquidity buffer

September 11, 2026 at 06:20 AM2 min

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Strategy reduced its net debt to roughly $174 million as of Sept. 7, down from $8.16 billion after Q3 2025, according to head of investor relations Chaitanya Jain. The company also increased dollar liquidity to $6.54 billion from $54 million on Sept. 30, 2025. The moves address the three areas S&P Global Ratings identified as potential paths to an upgrade from its B- junk rating.

Key Facts

Strategy's dollar liquidity rose to $6.54 billion as of Sept. 7, 2025, from $54 million on Sept. 30, 2025.
Convertible debt fell to $6.71 billion from $8.21 billion after Strategy repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May.
S&P affirmed Strategy's B- issuer credit rating with a stable outlook in December 2025, six notches below investment grade.
Strategy's designated USD Reserve stood at $5.10 billion, with another $1.44 billion held as USD Cash.

Liquidity Buildup

Strategy's dollar liquidity increased from $54 million on Sept. 30, 2025, to $6.54 billion as of Sept. 7, 2025. The company's latest regulatory filing breaks that amount into a designated USD Reserve of $5.10 billion and USD Cash of $1.44 billion. The reserve is earmarked for preferred dividends and interest, while the additional cash can also be used for Bitcoin purchases, security repurchases, and other capital-management purposes. This gives Strategy roughly four years of capacity to fund interest and preferred dividends without relying on Bitcoin sales.

Debt Reduction

Strategy repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May, paying about $1.38 billion, an 8% discount to par. Convertible debt has fallen to $6.71 billion from $8.21 billion. Net debt, measured against the company's growing dollar liquidity, dropped from about $8.16 billion after the third quarter of 2025 to roughly $174 million as of Sept. 7. The company still carries billions of dollars of perpetual preferred stock with dividend commitments that remain part of the liquidity burden S&P considers.

Credit Rating Path

S&P Global Ratings affirmed Strategy's B- issuer credit rating with a stable outlook in December 2025, after initially assigning the grade in October. The rating remains six notches below BBB-, the lowest rung of investment grade. S&P had identified the company's liquidity structure as a central weakness because its debt interest, maturities and preferred dividends are payable in dollars while most of its assets are held in Bitcoin. The agency warned that a severe decline in Bitcoin combined with reduced capital-market access could eventually force Strategy to sell the asset at depressed prices.