S&P Global Assigns First Credit Rating to a Bitcoin Treasury Company — Saylor’s Strategy Gets B-
Strategy (MSTR), the bitcoin-focused firm led by Michael Saylor, has become the first Bitcoin treasury company to receive a credit rating from a major agency after S&P Global assigned it a B- on Monday.
The B- rating, while notable as a milestone, places Strategy deep in speculative-grade or “junk” territory. S&P cited the company’s heavy reliance on bitcoin and limited cash flow as key risks despite its sizable market capitalization and ongoing access to capital markets.
According to S&P’s definitions, a B-rated company carries “speculative credit quality with increased default risk.” The B- grade signals even higher vulnerability to adverse conditions, though it remains above the agency’s lowest tiers.
Strategy has evolved from an enterprise software business into a publicly traded vehicle for holding bitcoin. Nearly all its free cash is used to buy BTC, and the firm often raises funds through convertible debt, preferred stock, or new equity issuance.
Saylor highlighted the significance of the move, saying it marked “a first for bitcoin treasury companies.” Others in the industry echoed the sentiment — KindlyMD CEO David Bailey said it could pave the way for greater institutional participation in digital-asset treasury vehicles.
Risk Factors and S&P’s Analysis
As of mid-2025, Strategy’s $70 billion bitcoin holdings outweighed its $15 billion in debt and preferred equity, but S&P said that advantage was offset by low dollar liquidity and nearly breakeven software operations. The company also posted a $37 million operating cash outflow in the first half of the year.
S&P warned of a “currency mismatch,” as the firm’s assets are denominated in bitcoin while its liabilities are in U.S. dollars — a setup that could force bitcoin sales if capital markets tighten.
The agency also noted that under its methodology, bitcoin is excluded from equity calculations because of its volatility, leaving Strategy with “negative total adjusted capital” on paper.
Additionally, Strategy faces $640 million in annual preferred stock dividends, which it plans to fund through equity sales rather than bitcoin liquidation. Delaying payments would grant preferred shareholders board representation and higher interest accruals.
Stable Outlook Despite Volatility
Despite the risks, S&P assigned a stable outlook, crediting Strategy’s history of managing maturities and maintaining investor confidence. The next major debt repayment isn’t due until 2028, giving the firm near-term breathing room.
S&P said it could downgrade the rating if market access tightens or if repayment risks rise, while an upgrade would depend on higher dollar reserves and lower reliance on convertible debt.
For now, the agency emphasized that Strategy’s credit profile will continue to “rise and fall with bitcoin.”
MSTR shares rose 3% on Monday as bitcoin traded around $115,500.
