5 days ago
S&P Global Ratings has fixed Michael Saylor’s Strategy a “B-” recognition rating, placing it successful the speculative, non-investment-grade territory — often referred to arsenic a “junk bond” — though it said the Bitcoin treasury company’s outlook remains stable.
“We presumption Strategy’s precocious bitcoin concentration, constrictive concern focus, anemic risk-adjusted capitalization, and debased US dollar liquidity arsenic weaknesses,” the recognition standing level said successful a reappraisal of Strategy connected Monday.
Strategy has accumulated its 640,808 BTC treasury chiefly via equity and indebtedness financing. The unchangeable outlook assumes the institution volition prudently negociate convertible indebtedness maturities and support preferred banal dividends, perchance done further indebtedness issuance, it said.
S&P Global highlighted that Strategy faces an “inherent currency mismatch,” with each indebtedness owed successful US dollars portion overmuch of its dollar reserves are allocated to money its bundle business, which operates astatine astir breakeven successful net and currency flow.
Source: StrategyThe recognition standing is important arsenic it marks the archetypal clip a Bitcoin‑treasury-focused company has received an S&P Global appraisal — establishing a benchmark for TradFi to measure the recognition hazard of companies that halfway their concern models astir Bitcoin and crypto.
Strategy is connected par with Sky Protocol
Strategy received the aforesaid people arsenic decentralized stablecoin issuer Sky Protocol, antecedently MakerDAO, successful August.
S&P Global pointed to Sky Protocol’s precocious depositor concentration, centralized governance and anemic capitalization to justify the B-minus rating.
Strategy’s B-minus standing volition request to bump up six levels — to BBB-minus — successful bid to flight the “junk bond” zone.
The latest standing comes arsenic Strategy was 1 of the Nasdaq’s best-performing stocks successful 2024, rallying 430%. MSTR has, however, retraced 13% truthful acold successful 2025, according to Google Finance data.
That includes a 2.27% emergence connected Monday, indicating that S&P Global’s standing didn’t wounded the company’s stock price.
Strategy indispensable summation US liquidity, trim reliance connected debt
While S&P Global said an upgrade successful the adjacent 12 months is unlikely, it noted that it could rise the ratings if Strategy improves its US dollar liquidity, eases convertible debt, and continues to show beardown entree to superior markets, including erstwhile Bitcoin retraces.
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However, S&P Global said there’s a hazard that Strategy’s convertible indebtedness whitethorn beryllium owed astatine a clip of a “severe Bitcoin stress,” forcing them to liquidate immoderate of its Bitcoin astatine “depressed prices.”
Strategy’s people could besides autumn little if its entree to superior markets weakens, crunching its quality to rise funds and proceed its Bitcoin strategy.
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