MSTR Leverage Myth Busted: CEO Reveals 12% Ratio to Quell Index Exclusion Fears
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Strategy Inc. (formerly MicroStrategy) emphasizes a low leverage of 12%, contradicting claims of being over-leveraged amid market uncertainties. The firm successfully raised $1.44 billion in equity within 8 days, securing dividend coverage for 21 months. This strategic move aims to maintain its position in the MSCI USA Index.
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- The Correction: CEO Phong Le states Strategy (MSTR) operates with just 12% leverage, defying distressed market narratives.
- The Defense: The firm raised $1.44 billion in equity in just 8 days, securing 21 months of dividend coverage to protect against volatility.
- The Stakes: The Operating Company classification is a strategic bid to prevent removal from the MSCI USA Index.
Strategy Inc. (formerly MicroStrategy) launched a targeted offensive against market “misconceptions” Tuesday, with CEO Phong Le categorically rejecting claims that the Bitcoin treasury firm is over-leveraged.
Strategy Has a Low Leverage With a Strong Balance Sheet
During a Bloomberg interview, Le noted that Strategy is 12% leveraged and adding their preferreds brings it up to 27%. That is lower than typical companies in the US, which are over 60% leveraged. According to Le, rumors in the public…
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