{"id":14487,"date":"2025-10-28T04:22:06","date_gmt":"2025-10-28T04:22:06","guid":{"rendered":"https:\/\/bitunikey.com\/news\/sp-assigns-michael-saylors-strategy-a-b-junk-rating-citing-bitcoin-risk\/"},"modified":"2025-10-28T04:22:14","modified_gmt":"2025-10-28T04:22:14","slug":"sp-assigns-michael-saylors-strategy-a-b-junk-rating-citing-bitcoin-risk","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/sp-assigns-michael-saylors-strategy-a-b-junk-rating-citing-bitcoin-risk\/","title":{"rendered":"S&amp;P assigns Michael Saylor\u2019s Strategy a B- junk rating citing Bitcoin risk"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">In the first-ever rating for a Bitcoin treasury company, S&amp;P just rated Michael Saylor\u2019s Strategy Inc. a\u00a0B- junk credit.<\/p>\n<div id=\"cn-block-summary-block_335949271acdb1edbdaa850472a484aa\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>S&amp;P has assigned Strategy a B- junk rating.<\/li>\n<li>Rating cites Bitcoin exposure, low liquidity, and concentrated risk.<\/li>\n<li>Marks first-ever rating for a Bitcoin treasury-focused company.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>S&amp;P Global Ratings has assigned Strategy Inc., the Bitcoin-treasury company formerly known as MicroStrategy, a B- credit rating, placing it six notches below investment grade.<\/p>\n<p>The report, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-10-27\/michael-saylor-s-strategy-tagged-junk-by-s-p-in-initial-rating\" target=\"_blank\" rel=\"nofollow\">published<\/a> by Bloomberg on Oct. 27, stated that the rating reflects Strategy\u2019s deep concentration in Bitcoin (BTC) and limited diversification, as well as concerns about liquidity and risk-adjusted capitalization.<\/p>\n<h2 class=\"wp-block-heading\">S&amp;P cites Bitcoin exposure and weak liquidity<\/h2>\n<p>Strategy Inc., led by Michael Saylor, has spent the past five years transforming from an enterprise software firm into a company built around Bitcoin accumulation. It now holds 640,808 BTC, worth around $74 billion, making it the world\u2019s largest corporate holder of the asset.<\/p>\n<p>According to S&amp;P, Strategy is extremely vulnerable to changes in the market because of its significant exposure to Bitcoin. Its main software business makes little money and provides little defence against a decline in cryptocurrency prices. The company reported $37 million in negative operating cash flow during the first half of 2025 and maintains minimal dollar reserves, as most of its treasury is tied up in BTC.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>The agency also highlighted liquidity and currency mismatch risks. Strategy holds about $8 billion in USD-denominated convertible debt maturing between 2028 and 2031, and preferred stock dividends exceed $640 million annually. A prolonged drop in Bitcoin\u2019s price, S&amp;P warned, could make it harder for the company to meet those obligations.<\/p>\n<p>Despite these vulnerabilities, S&amp;P maintained a stable outlook, assuming Strategy will manage its financing needs through stock offerings and structured debt sales, methods it has used to fund recent Bitcoin purchases, including a recent 390 BTC buy worth $43.4 million.<\/p>\n<h2 class=\"wp-block-heading\">Industry milestone for Bitcoin treasuries<\/h2>\n<p>Saylor described the rating as a milestone for Bitcoin adoption in traditional finance, noting it was the first time a major credit agency had formally evaluated a BTC-focused public company. He called it a \u201cstep toward normalization,\u201d framing the rating as recognition rather than a setback.<\/p>\n<p>Analysts see the move as setting a reference point for other Bitcoin-heavy firms such as Metaplanet and Marathon Digital, which may seek similar evaluations. While the B- B-grade keeps Strategy in speculative territory, it marks progress in bridging the gap between crypto-based business models and traditional capital markets.<\/p>\n<p>Strategy rebranded from MicroStrategy earlier this year, fully embracing its identity as a Bitcoin treasury company. Its third-quarter earnings, due Oct. 30, will offer further insight into how it balances debt, cash flow, and exposure to the world\u2019s most volatile asset.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the first-ever rating for a Bitcoin treasury company, S&amp;P just rated Michael Saylor\u2019s Strategy Inc. a\u00a0B- junk credit. Summary S&amp;P has assigned Strategy a B- junk rating. Rating cites&hellip;<\/p>\n","protected":false},"author":1,"featured_media":14488,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-14487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=14487"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14487\/revisions"}],"predecessor-version":[{"id":14489,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/14487\/revisions\/14489"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/14488"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=14487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=14487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=14487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}