MicroStrategy, a business intelligence company, has reached a record-low leverage ratio of 0.13 in January 2025, indicating a change in its Bitcoin treasury strategy since October 2020. The company now holds $48.4 billion worth of Bitcoin against $6.2 billion in debt, reducing its financial risk and allowing it to issue more debt and purchase additional Bitcoin. MicroStrategy's lowered debt-to-asset ratio reflects its refined approach to managing its Bitcoin holdings and debt obligations, demonstrating a strong commitment to Bitcoin despite regulatory and financial pressures. However, recent U.S. taxation policies could pose a challenge as the company may face taxes on its $20 billion unrealized Bitcoin gains. Nevertheless, MicroStrategy's reduced leverage ratio positions the company to adapt to changing financial and regulatory landscapes and capitalize on market opportunities to expand its Bitcoin reserves.



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