Strategy Receives Junk Credit Rating from S&P Global Ratings

According to PANews, S&P Global Ratings has assigned a junk credit rating to Strategy, formerly known as MicroStrategy, citing several vulnerabilities. These include a high concentration in cryptocurrency business, limited business scope, weak risk-adjusted capital strength, and insufficient dollar liquidity. The credit rating, announced on Monday, is B-, six notches below investment grade, with a stable outlook. Over the past five years, company co-founder Michael Saylor noted on X that this is the first time a Bitcoin asset company has received a credit rating. S&P credit analysts highlighted that Strategy holds approximately $74 billion in fair value Bitcoin, acquired through debt and equity issuance. While S&P acknowledged the company's "prudent" management of convertible bonds, it expressed concerns over liquidity risks associated with its debt arrangements. Strategy has issued nearly $15 billion in convertible bonds and preferred stock, including $5 billion in out-of-the-money convertible bonds set to mature starting in 2028. As of October 2025, the company is also required to pay over $640 million annually in preferred stock dividends. S&P emphasized the liquidity risks related to Strategy's convertible bonds and preferred stock dividends, noting that the convertible bonds may mature under pressure from Bitcoin price fluctuations.