Strategy Puts Net Leverage at 3% Under Formula Excluding Preferred Stock

Strategy put its net leverage at 3% in a Nov. 2 update. The company calculates the measure as debt minus USD Assets, divided by BTC Reserve. Preferred stock is not included as a separate term, so the figure does not measure every claim against Strategy’s Bitcoin holdings. Strategy wrote that its Bitcoin holdings had increased sixfold since January 2023 while net leverage fell from 108% to 3%. The comparison does not establish whether Strategy used the same calculation for both dates. From Oct. 26 through Nov.