Strategy has reduced its net leverage to almost zero after accumulating $6.69 billion in dollar liquidity, giving the Bitcoin treasury company a much stronger financial cushion.

The company calculates net leverage by subtracting its dollar assets from approximately $6.75 billion in debt and dividing the remainder by the value of its Bitcoin holdings. Strategy’s BTC reserve is currently valued at roughly $66 billion.

In recent months, Strategy has focused heavily on raising capital and increasing its U.S. dollar reserves. The company now has about $5.1 billion in its main reserve, enough to cover nearly four years of preferred-stock dividend payments, which total around $1.7 billion annually.

It also holds a separate $1.59 billion cash pool that can be used for more flexible corporate purposes.

Executive Chairman Michael Saylor said the company’s dollar liquidity strengthens its digital credit strategy and can be used to purchase Bitcoin, pay preferred dividends and interest, repurchase common or preferred shares, retire convertible debt and expand its dollar reserve.

Strategy’s STRC Remains Below Par

Strategy’s variable-rate perpetual preferred stock, STRC, has gained more than 35% from its June low and is trading around $97.23, leaving it below the $100 par value.

The preferred stock’s recovery has come alongside Bitcoin’s move toward $80,000 and Strategy’s continued purchases of STRC shares below par.

Strategy’s financial position differs from rival Bitcoin treasury company Strive Asset Management, which has eliminated its debt and currently carries no borrowings.

The distinction is important because debt holders have priority over preferred shareholders in the corporate capital structure.

Strive’s SATA perpetual preferred stock has climbed back to its $100 par value, allowing the company to issue additional shares through its at-the-market program last week.

Strategy also reduced its debt burden in May by repurchasing $1.5 billion of convertible notes due in 2029. Further reductions in debt would improve the position of STRC holders within the company’s capital structure.

With substantial dollar liquidity, ongoing STRC repurchases and Bitcoin recovering toward $80,000, Strategy has several factors that could help push its preferred stock closer to par.