S&P Global Ratings, the American credit rating agency, has granted a rating to Michael Saylor 's Bitcoin (BTC) proxy Strategy (Nasdaq: MSTR).
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Led by co-founder and executive chairman Michael Saylor, Strategy is the world's leading Bitcoin treasury firm. It now holds 640,808 BTC, worth approximately $74 billion, on its balance sheet.
The company raises funds to acquire Bitcoin by selling a common stock, MSTR, and preferred stocks, STRF, STRK, and STRD.
Although Saylor highlighted that Strategy is the first-ever Bitcoin treasury company to earn a rating from a major credit rating agency, S&P Global has issued a rather negative rating.
S&P Global issues low rating to Strategy
The credit rating agency said it saw Strategy's high Bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity as "weaknesses."
These weaknesses are only partly offset by its strong access to capital markets and "prudent management" of its capital structure, it added. The agency underlined that the company maintains no maturities in the next 12 months and finances its business primarily with equity.
S&P Global assigned its 'B-' issuer credit rating to Strategy. A B- rating from the agency is considered speculative grade, which means it's below investment grade and indicates relatively high credit risk. However, the outlook is stable, it added.
"Debt maturities, interest on the company's debt, and dividends on its preferred securities are all due in dollars, while Strategy holds mostly bitcoin."
It exposes Strategy to potential Bitcoin regulatory changes and cyber risks that could be detrimental to its business model, it warned.
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"There are liquidity risks, in our view, from the company's convertible debt," the agency added. Strategy has $8 billion in notional value of convertible debt, of which $5 billion has not met the conversion price and is maturing beginning in 2028.
The agency said there is a risk of the convertible debt maturing at the same time as a "severe Bitcoin stress." This could force the company to liquidate its Bitcoin at depressed prices or restructure its convertible debt or preferred equity.
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No chance of an upgrade but a downgrade likely
S&P Global said it could lower the rating over the next 12 months if Strategy faces constrained access to capital markets or is unable to manage maturities of out-of-the-money convertible debt.
The rating agency doesn't expect to upgrade the rating at all over the next 12 months, but could do so in the long-term if Strategy improves its U.S. dollar liquidity, reduces dependence on convertible debt, and can easily access capital markets even during a bitcoin stress.
This story was originally reported by TheStreet on Oct 27, 2025, where it first appeared in the Business News section. Add TheStreet as a Preferred Source by clicking here.
