Strategy cuts net leverage to near zero as cash matches convertible debt

The strategy cut net leverage to near zero after its cash holdings came to match the value of outstanding convertible debt, effectively neutralizing borrowed exposure. That reduces the likelihood of forced deleveraging or margin-driven selling that can amplify downward moves in Bitcoin during stress. It also limits the strategy’s leveraged upside, making its performance track Bitcoin price movements more directly. Overall, the balance-sheet repair lowers near-term tail risk for Bitcoin while slightly reducing potential amplified gains from this vehicle.