S&P Global Scores has given Michael Saylor’s Strategy a “B-” credit standing, putting it within the speculative, non-investment-grade territory — sometimes called a “junk bond” — though it mentioned the Bitcoin treasury firm’s outlook stays steady.
“We view Strategy’s excessive bitcoin focus, slim enterprise focus, weak risk-adjusted capitalization, and low US greenback liquidity as weaknesses,” the credit standing platform said in a overview of Strategy on Monday.
Strategy has accrued its 640,808 BTC treasury primarily through fairness and debt financing. The steady outlook assumes the corporate will prudently handle convertible debt maturities and preserve most well-liked inventory dividends, probably by extra debt issuance, it mentioned.
S&P Global highlighted that Strategy faces an “inherent forex mismatch,” with all debt due in US {dollars} whereas a lot of its greenback reserves are allotted to fund its software program enterprise, which operates at roughly breakeven in earnings and money circulation.
The credit standing is important because it marks the primary time a Bitcoin‑treasury-focused company has obtained an S&P Global evaluation — establishing a benchmark for TradFi to judge the credit score threat of corporations that heart their enterprise fashions round Bitcoin and crypto.
Strategy is on par with Sky Protocol
Strategy obtained the identical rating as decentralized stablecoin issuer Sky Protocol, beforehand MakerDAO, in August.
S&P Global pointed to Sky Protocol’s excessive depositor focus, centralized governance and weak capitalization to justify the B-minus rating.
Strategy’s B-minus ranking might want to bump up six ranges — to BBB-minus — so as to escape the “junk bond” zone.
The most recent ranking comes as Strategy was one of many Nasdaq’s best-performing shares in 2024, rallying 430%. MSTR has, nonetheless, retraced 13% to date in 2025, in response to Google Finance data.
That features a 2.27% rise on Monday, indicating that S&P Global’s ranking didn’t damage the corporate’s share worth.
Strategy should enhance US liquidity, scale back reliance on debt
Whereas S&P Global mentioned an improve within the subsequent 12 months is unlikely, it famous that it might increase the rankings if Strategy improves its US greenback liquidity, eases convertible debt, and continues to exhibit sturdy entry to capital markets, together with when Bitcoin retraces.
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Nevertheless, S&P Global mentioned there’s a threat that Strategy’s convertible debt could also be due at a time of a “extreme Bitcoin stress,” forcing them to liquidate some of its Bitcoin at “depressed costs.”
Strategy’s rating might additionally fall decrease if its entry to capital markets weakens, crunching its potential to boost funds and proceed its Bitcoin technique.
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