S&P Global Ratings has assigned Michael Saylor’s Bitcoin-focused company, Strategy, a “B-” credit rating, placing it in the speculative, non-investment-grade category often referred to as “junk.”
- rating comes with a stable outlook
- first time a Bitcoin-treasury-centric firm has received an S&P assessment
In its review, S&P cited Strategy’s heavy reliance on Bitcoin holdings, narrow business model, weak risk-adjusted capitalization, and limited U.S. dollar liquidity as key vulnerabilities. The company’s 640,808-Bitcoin treasury has been built largely through equity issuance and debt financing, leaving it highly exposed to crypto-market volatility.
S&P said its stable outlook assumes Strategy will manage its convertible debt maturities prudently and maintain preferred-stock dividend payments, potentially by issuing additional debt. The agency also highlighted an “inherent currency mismatch” between Strategy’s U.S. dollar-denominated liabilities and its Bitcoin-based assets, noting that much of its dollar reserves are tied up in its software division, which runs roughly at breakeven.
The credit rating underscores both the progress and risks in bridging crypto finance with traditional credit markets, establishing a reference point for how rating agencies may assess similar Bitcoin-treasury strategies in the future.
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