Woofun AI reports that Strategy (MSTR) has effectively neutralized its net leverage, a structural pivot driven by the accumulation of dollar liquidity to match outstanding obligations. This financial recalibration centers on the company's role as the largest publicly traded bitcoin (BTC) holder, with Executive Chairman Michael Saylor confirming the strategy via a post on X.

The mechanics involve subtracting dollar assets from approximately $6.75 billion in debt, then dividing the remainder by the $66 billion bitcoin reserve value. Strategy has built a $5.1 billion USD Reserve, sufficient to cover four years of the $1.7 billion annual preferred-stock dividends.

Additionally, a $1.59 billion USD Cash pool was established for flexible deployment. Per Woofun AI, this liquidity supports the Digital Credit Capital Framework, designated for Bitcoin Treasury Company purposes including acquiring BTC, repurchasing MSTR/preferred stock, and repaying converts.

Market reaction has been positive, with STRC rallying 35% from its June low to $97.23, though still below the $100 par value. This recovery coincides with bitcoin's rebound towards $80,000 and ongoing STRC buybacks. In contrast, rival Strive Asset Management (ASST) eliminated all debt earlier this year, allowing its SATA preferred stock to return to par and enabling an at-the-market (ATM) issuance last week. Strategy previously reduced its burden in May by repurchasing $1.5 billion of convertible notes due in 2029.

While eliminating remaining debt would strengthen STRC's seniority in the capital structure, immediate support relies on continued buybacks and ample dollar liquidity. The path to par value now hinges on sustaining this balance alongside bitcoin's price recovery.