In a historic first for the cryptocurrency sector, S&P Global Ratings has officially issued a B- “junk” credit rating for Strategy Inc., the Bitcoin-treasury company led by Michael Saylor and formerly known as MicroStrategy.
The rating places Strategy six notches below investment grade — marking the first-ever credit assessment of a company whose core business revolves around Bitcoin accumulation and treasury management.
⚠️ S&P Cites Bitcoin Exposure and Weak Liquidity
According to the S&P report, Strategy’s rating reflects its heavy reliance on Bitcoin, limited business diversification, and weak liquidity position.
Over the past five years, the company has shifted its focus entirely from enterprise software to becoming a Bitcoin-holding entity, amassing 640,808 BTC, worth approximately $74 billion at current market prices — making it the world’s largest corporate holder of Bitcoin.
S&P warned that Strategy’s operating performance and financial stability are highly correlated with Bitcoin’s market price. The company’s legacy software business contributes little to offset potential downturns in BTC value.
In the first half of 2025, Strategy reported negative operating cash flow of $37 million, while maintaining minimal fiat reserves, as most of its assets remain in Bitcoin.
💸 Debt Pressure and Currency Mismatch
The rating agency also highlighted liquidity and currency mismatch risks. Strategy currently carries about $8 billion in USD-denominated convertible debt maturing between 2028 and 2031, alongside preferred stock dividends exceeding $640 million annually.
A sustained Bitcoin price decline, S&P noted, could impair the company’s ability to service its debt obligations, given its limited non-Bitcoin liquidity.
Despite these vulnerabilities, S&P issued a stable outlook, citing Strategy’s proven ability to raise capital through stock sales and structured debt offerings — strategies the company has consistently used to fund new Bitcoin purchases.
Most recently, Strategy acquired 390 BTC worth $43.4 million, continuing its aggressive accumulation approach.
🪙 A Milestone Moment for Bitcoin Treasuries
While the B- junk rating may appear negative, Michael Saylor framed it as a historic milestone for Bitcoin integration into traditional finance.
“This is a step toward normalization,” Saylor said, emphasizing that S&P’s assessment marks recognition of Bitcoin treasuries within global capital markets — not rejection.
Market observers agree that the move sets a reference point for future Bitcoin-heavy corporations, including Metaplanet and Marathon Digital, which could seek similar credit evaluations.
Although Strategy remains in speculative-grade territory, the rating demonstrates growing institutional acceptance of Bitcoin-based business models.
📊 What Comes Next
Strategy Inc. officially rebranded from MicroStrategy earlier this year, fully embracing its role as a Bitcoin treasury vehicle rather than a software enterprise.
Investors now await the company’s Q3 earnings report on October 30, which will shed further light on how it manages debt, cash flow, and exposure to one of the world’s most volatile assets.
