Leverage Ratio (MSTR)
A measure of debt relative to assets or equity, in Strategy’s case (Debt + Preferred)/Market Cap.
What is Leverage Ratio (MSTR)?
Leverage ratio assesses financial risk by comparing liabilities to assets, with Strategy defining it as (Debt + Preferred Stock)/Market Cap, targeting 20-30% for “intelligent leverage.” As of May 2025, it stood at 9%, the lowest since 2020, enabling further debt for Bitcoin buys.
In Bitcoin treasuries, higher ratios amplify returns but risk liquidations; Strategy’s 3:1 implies 30% equity loss on 10% Bitcoin drop.
Related Terms
e-CNY
China’s digital yuan, a CBDC issued by the People’s Bank of China.
Solana Token Program
A core Solana onchain program with the program ID `TokenkegQfeZyiNwAJbNbGKPFXCWuBvf9Ss623VQ5DA`, enabling the creation, transfer, minting, and freezing of fungible and non-fungible digital assets.
Token
Digital units of value built on existing blockchains, representing assets, utilities, or stakes in decentralized ecosystems.
Trading Fee
A fee charged by a Perp DEX for executing trades.
XRP (Ripple)
Native digital asset of the XRP Ledger, facilitating fast cross-border payments via Ripple.
Solana Account
A digital wallet address on the Solana blockchain used to hold, send, and receive SOL and other SPL tokens, secured by a private key.