Credit risk at Strategy has eased as the notional value of its perpetual preferred equity surpassed its outstanding convertible debt, according to company disclosures. Preferred equity now totals about $8.36 billion, exceeding roughly $8.2 billion in convertibles, signaling a structural shift in how the Bitcoin-focused firm finances its balance sheet.
The move away from maturity-based convertible bonds reduces refinancing pressure and dampens equity-linked volatility. Perpetual preferred shares carry fixed dividends but no repayment obligation, offering more stable, long-duration capital compared with debt that matures and fluctuates with stock price movements.
The change comes as Strategy continues to expand its Bitcoin holdings while managing leverage risk. A larger equity base and significant cash reserves further improve dividend coverage and reduce near-term funding concerns, supporting a more durable capital structure amid crypto market volatility.
