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- Strategy Inc. earns first S&P rating for a Bitcoin treasury firm at B- (stable).
- High Bitcoin concentration and low liquidity cited as key weaknesses.
- Investors view the rating as a milestone for crypto in traditional finance.
Michael Saylor’s Strategy Inc., the Bitcoin-heavy treasury company, has been assigned a B- credit rating by S&P Global Ratings. This “junk bond” level rating places the firm in speculative territory but comes with a stable outlook. It’s the first time a major credit agency has rated a company whose balance sheet is largely Bitcoin-based, signaling growing recognition of crypto in traditional finance.
Despite the low rating, Strategy’s stock (MSTR) climbed 2.27% to $295.63, reflecting continued investor confidence in Saylor’s long-term Bitcoin strategy. The milestone may also serve as a benchmark for evaluating digital-asset treasuries in the future.
S&P Global Ratings has assigned Strategy Inc a 'B-' Issuer Credit Rating (Outlook Stable) — the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency.https://t.co/VByjvTY7V3
— Strategy (@Strategy) October 27, 2025
Why Strategy Got a B- Rating
S&P cited Strategy’s heavy reliance on Bitcoin, narrow business scope, and low U.S. dollar liquidity as key weaknesses. The company holds roughly 640,808 BTC, largely financed through equity and debt. According to S&P, a sharp Bitcoin price drop could pressure Strategy’s balance sheet and force asset sales at depressed prices.
“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity as weaknesses,” the agency stated.
Also Read: Mt. Gox Delays $4B Bitcoin Repayment to 2026 as Creditors Face Another Year of Waiting
Industry Reactions and Skepticism
Not everyone agrees with S&P’s assessment. Crypto analyst Adam Livingston criticized the rating, calling it “hilarious” and suggesting that traditional metrics fail to capture the transparency and resilience of blockchain-based holdings. VanEck analyst Matthew Sigel noted that while a B- rating implies a roughly 15% default risk over five years, Strategy’s debt and liquidity profile are actually stronger than many similarly rated traditional companies.
Everybody, please read this as it relates to Strategy's credit rating.
— Adam Livingston (@AdamBLiv) October 27, 2025
It's hilarious
S&P Global: "we are likely to continue to view capital as a weakness, because Strategy's bitcoin holdings are likely to grow materially"
So basically "the more Bitcoin they buy, the weaker… pic.twitter.com/vC4khB4sog
Looking Ahead: Risks and Opportunities
S&P indicated that an upgrade is unlikely unless Strategy boosts U.S. dollar liquidity and reduces its debt reliance. Still, Michael Saylor framed the rating as a milestone, noting it shows mainstream finance is beginning to recognize Bitcoin treasury models. For investors, Strategy remains a high-risk, pioneering play in the convergence of crypto and corporate finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
