S&P Global Ratings has assigned a “B-” credit rating to Michael Saylor’s Strategy, categorizing it within the speculative, non-investment-grade range — commonly termed a “junk bond” — but noted that the Bitcoin treasury company maintains a stable outlook.
“We consider Strategy’s high bitcoin concentration, limited business scope, weak risk-adjusted capitalization, and low US dollar liquidity as significant weaknesses,” the credit rating organization stated in a review of Strategy on Monday.
Strategy has built its 640,808 BTC treasury primarily through equity and debt financing. The stable outlook assumes that the company will prudently handle convertible debt maturities and maintain preferred stock dividends, possibly through further debt issuance, the report indicated.
S&P Global emphasized that Strategy experiences an “inherent currency mismatch,” with all debts denominated in US dollars while a significant portion of its dollar reserves is allocated to support its software business, which operates at about breakeven in terms of earnings and cash flow.
This credit rating is notable as it represents the first instance where a Bitcoin‑treasury-focused company has received an S&P Global evaluation — setting a standard for traditional finance to assess the credit risk of businesses centered around Bitcoin and crypto.
Strategy is on par with Sky Protocol
Strategy received the same rating as decentralized stablecoin issuer Sky Protocol, formerly MakerDAO, back in August.
S&P Global pointed to Sky Protocol’s high depositor concentration, centralized governance, and weak capitalization as reasons for the B-minus rating.
To move out of the “junk bond” category, Strategy’s B-minus rating would need to increase by six levels — reaching BBB-minus.
This latest rating emerges as Strategy was among the Nasdaq’s top-performing stocks in 2024, soaring 430%. However, MSTR has retraced by 13% so far in 2025, according to Google Finance data.
This includes a 2.27% increase on Monday, indicating that the rating from S&P Global did not negatively impact the company’s share price.
Strategy must increase US liquidity, reduce reliance on debt
While S&P Global conveyed that an upgrade within the next year is unlikely, it noted that ratings could be raised if Strategy enhances its US dollar liquidity, alleviates convertible debt, and continues to exhibit strong access to capital markets, even during Bitcoin pullbacks.
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Nonetheless, S&P Global cautioned that there is a risk of Strategy’s convertible debt maturing during a period of “severe Bitcoin stress,” which may necessitate liquidating some of its Bitcoin at “depressed prices.”
Additionally, Strategy’s rating could drop further if its access to capital markets diminishes, hindering its ability to raise funds and pursue its Bitcoin strategy.
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