S&P Global Assigns “Junk” Credit Rating to Michael Saylor’s Strategy, Outlook Stable

S&P Global Ratings has given Michael Saylor’s Bitcoin-focused company, Strategy, a “B-” credit rating, placing it in speculative, non-investment-grade territory. Despite the downgrade, S&P said the company’s outlook remains stable, reflecting confidence in its ability to manage debt and maintain liquidity over the short term.

In its Monday review, S&P cited several weaknesses, including Strategy’s heavy Bitcoin concentration, limited business diversification, weak risk-adjusted capitalization, and low U.S. dollar liquidity. The firm noted that while the company’s Bitcoin holdings have driven much of its market value, they also expose it to significant volatility and liquidity risks.

Strategy, which has amassed 640,808 BTC primarily through equity and debt financing, operates a software business that remains close to breakeven in earnings and cash flow. S&P pointed out that the company faces an “inherent currency mismatch,” as its debts are denominated in U.S. dollars while a large share of its liquid assets is tied up in Bitcoin.

The stable outlook assumes that Strategy will prudently manage convertible debt maturities and continue to pay preferred stock dividends, possibly by taking on additional debt. However, the report warned that if Bitcoin prices fall sharply, the company could be forced to sell Bitcoin at depressed prices to cover its obligations.

First Bitcoin Treasury Company to Receive an S&P Rating

The assessment marks a milestone for the crypto industry, the first time S&P Global has rated a company whose core business revolves around Bitcoin. The rating effectively sets a benchmark for traditional financial institutions to measure the creditworthiness of firms deeply tied to digital assets.

Strategy’s B-minus rating places it on the same level as Sky Protocol (formerly MakerDAO), a decentralized stablecoin issuer that received an identical rating in August. S&P attributed both ratings to weak capitalization and concentrated exposure risks within their respective markets.

To move out of “junk” territory, Strategy’s rating would need to rise six levels to BBB-minus, the lowest investment-grade score.

Path to a Higher Rating

S&P said an upgrade within the next year is unlikely but could occur if Strategy improves U.S. dollar liquidity, reduces reliance on debt, and continues to demonstrate strong access to capital markets, even during Bitcoin downturns.

The report also cautioned that any deterioration in the company’s ability to raise funds could lead to a lower rating.

Despite the speculative grade, Strategy’s stock, ticker MSTR, remains one of Nasdaq’s standout performers. After soaring 430% in 2024, shares have dipped about 13% in 2025, though they rose 2.27% on Monday, suggesting that investors remain confident in Saylor’s long-term Bitcoin vision despite S&P’s cautious stance.