Strategy Cuts Net Debt by $8 Billion and Boosts Liquidity, Targeting S&P Junk‑Rating Upgrade

Strategy, the Bitcoin treasury firm led by Michael Saylor, reported a dramatic improvement in its balance sheet over the past eleven months, aiming to move its S&P Global Ratings B‑ rating closer to investment grade.

Liquidity Expansion

Dollar‑denominated liquidity grew from $54 M at the end of September 2025 to $6.54 B as of 7 September 2026. The firm separates this cash into a $5.10 B USD Reserve, earmarked for preferred dividends and interest, and $1.44 B USD Cash, which can be used for Bitcoin purchases, security repurchases, and other capital‑management activities.

Debt Reduction

Convertible senior notes due 2029 were repurchased for $1.38 B, an 8 % discount to par, lowering outstanding convertible debt from $8.21 B to $6.71 B. Net debt, measured against the expanded liquidity pool, fell from roughly $8.16 B to about $174 M.

Continued Capital Access

From January through August 2026, Strategy raised $21 B in common and preferred equity, securing new capital in every month despite Bitcoin’s price falling more than 30 % to under $60 k before recovering to near $80 k.

Bitcoin Concentration Remains a Rating Factor

As of 9 September 2026, the company held 845,050 BTC, acquired for $63.73 B at an average price of $75,412 per coin. This heavy exposure to Bitcoin continues to be a central risk in S&P’s rating assessment.

Rating Outlook

S&P affirmed Strategy’s B‑ rating with a stable outlook in December 2025 and indicated that an upgrade would require sustained liquidity, reduced reliance on convertible debt, and ongoing capital‑market access during Bitcoin stress. No new rating action has been taken since the balance‑sheet changes.