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Michael Saylor of Strategy MSTR reduces net leverage to nearly zero by building a $6.69 billion dollar liquidity reserve.

Michael Saylor, the Executive Chairman of Strategy MSTR, oversaw a strategy to reduce the company's net leverage to almost zero. The company achieved this by building a dollar liquidity reserve of $6.69 billion. Strategy MSTR holds the largest publicly traded bitcoin reserve, valued at approximately $66 billion. To support its $1.7 billion annual preferred-stock dividends, the Strategy MSTR dollar reserve has grown to $5.1 billion, covering about four years of dividend payments. Additionally, the company established a $1.59 billion cash pool for flexible deployment. Michael Saylor stated that the USD cash enhances the Digital Credit Capital Framework and is designated for purposes such as acquiring bitcoin, paying dividends, and repurchasing stock. The company's variable-rate perpetual preferred stock, STRC, has rallied over 35% from its June low. This recovery is supported by bitcoin's price rebound and ongoing STRC repurchases. Meanwhile, rival company Strive Asset Management ASST eliminated its debt earlier this year, allowing its perpetual preferred stock, SATA, to return to its $100 par value.

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