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S&P Global Ratings has just announced a “B-” credit rating for Strategy , a company founded by billionaire Michael Saylor , famous for its strategy of holding the world’s largest Bitcoin . With this rating, Strategy is classified as a “junk bond” – a group with high risk and not meeting safe investment standards , but still maintains a stable outlook in the medium term.
S&P Global Concerned About Bitcoin Centralization Risk and Weak Liquidation
In its rating report released earlier this week, S&P Global said Strategy is facing many structural risks , including:
Bitcoin centralization is too high ,
Narrow business model ,
Weak Capital -adjusted capitalization ,
And limited USD liquidation .
According to S&P, Strategy currently holds approximately 640,800 BTC , purchased primarily through the issuance of shares and convertible bonds . While the outlook is rated stable, this can only be maintained if the company manages its maturing debt well , maintains its preferred stock dividends , and can raise additional Capital when necessary .
A major weakness is the currency imbalance – all of Strategy’s debt is denominated in US dollars , while the majority of its existing USD is used to operate its enterprise software business, which is only breaking Capital in terms of cash flow. This could force the company to sell Bitcoin during low-price periods if it needs to pay down debt – a significant risk in a volatile crypto market.
This is the first time in history that a company focused on holding Bitcoin as its primary treasury asset has been officially rated by S&P Global . This helps set a new standard for the traditional finance industry (TradFi) in quantifying the credit risk of companies operating around Bitcoin and blockchain technology.
According to S&P, Strategy currently has the same “B-” rating as Sky Protocol (formerly MakerDAO), a Decentralized Stablecoin issuer. Both are assessed as having high concentration risk , centralized governance , and weak Capital capacity . To escape the junk bond zone , Strategy needs to be upgraded by 6 notches , reaching BBB- , equivalent to the minimum investment grade in the safety standards of the international financial market.
Despite the B- rating, Strategy’s STRY stock has shown incredible strength. In 2024, the stock rose more than 430% , making it one of the best-performing stocks on the Nasdaq . In 2025, despite a 13% decline , investors remain confident that Michael Saylor’s Bitcoin strategy will continue to deliver long-term returns.
Notably, right after S&P released its report, Strategy shares still rose 2.27% in the first session of the week , showing that market confidence was almost unaffected .
Low upgrade possibility, Strategy needs to increase USD liquidation and reduce debt
According to S&P Global, the possibility of a credit rating upgrade in the next 12 months is very low . However, this could change if Strategy:
Increasing liquidation in US dollars ,
Reduce reliance on convertible debt ,
And maintain strong Capital capabilities , even during Bitcoin price corrections .
Conversely, if the company loses access to Capital markets or is unable to secure new loans, the rating could be further downgraded , putting further pressure on financing costs and cash flows.
