S&P Global Ratings has assigned a “B-” credit rating to Michael Saylor’s Bitcoin treasury company, Strategy, placing it in the speculative-grade or “junk bond” category.
The agency noted that while Strategy’s outlook remains stable, the company’s significant Bitcoin exposure and limited liquidity present key financial vulnerabilities.
“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses,” S&P Global said in its report on Monday.
Liquidity and Currency Mismatch Pose Risks
Strategy has accumulated over 640,000 BTC — worth tens of billions of dollars — primarily through debt and equity financing. The stable outlook reflects S&P’s assumption that the company will manage its convertible debt maturities prudently and maintain dividend payments on its preferred stock.
However, S&P warned that Strategy’s financial structure carries an “inherent currency mismatch.”
While its debt obligations are denominated in U.S. dollars, much of its liquidity is tied up in Bitcoin holdings or allocated to fund its software business, which operates near breakeven levels.
First-of-Its-Kind Rating for Bitcoin Treasury Model
This marks the first time a Bitcoin-focused firm has received an S&P Global credit rating, providing a new benchmark for traditional finance institutions assessing crypto-heavy business models.
Strategy’s B-minus rating places it in the same category as decentralized stablecoin issuer Sky Protocol — formerly known as MakerDAO — which received a similar score in August due to depositor concentration and governance concerns.
To escape the speculative tier, Strategy would need to improve its rating by six levels, reaching BBB-minus.
Stock Performance Remains Strong
Despite the “junk” label, Strategy’s stock performance has been strong.
The company was one of Nasdaq’s top performers in 2024, surging by 430% before a modest 13% pullback in 2025, according to Google Finance data.
Shares even rose 2.27% on the day of S&P’s announcement, signaling limited investor concern.
Outlook Depends on Liquidity and Debt Management
S&P indicated that an upgrade in the next year is unlikely unless Strategy increases its dollar liquidity, reduces reliance on convertible debt, and maintains solid access to capital markets — particularly during potential Bitcoin downturns.
Conversely, the rating could be lowered if Strategy’s ability to raise funds weakens or if it is forced to liquidate Bitcoin holdings during a market crash.
The report underscores how Strategy’s financial health remains tightly linked to Bitcoin’s performance, positioning it as both a pioneer and a high-risk entity in the intersection of crypto and corporate finance.
