S&P Global Ratings has assigned a B- issuer credit rating to Strategy Inc, the company formerly known as MicroStrategy. The rating comes with a stable outlook, meaning S&P does not expect major changes in the short term.
Strategy Inc is well-known for its unconventional business model. Instead of using its capital mainly to grow its software business, the company raises money through debt and equity and uses it to buy Bitcoin. Today, the firm acts more like a Bitcoin holding vehicle than a traditional tech company.
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
S&P says this structure gives investors a way to gain exposure to Bitcoin without holding it directly. But it also brings meaningful risks.
Why S&P Downgraded the Strategy
According to S&P, the B- rating reflects several weaknesses:
- Extreme Bitcoin concentration
- Low U.S. dollar liquidity
- Negative capital position once Bitcoin is excluded
- Dependence on capital markets for funding
- Limited cash flow from operations
S&P views Strategy’s balance sheet as risky because the company holds mostly Bitcoin, yet its debts and dividends must be paid in dollars. Since the company does not want to sell Bitcoin to cover costs, it continues raising capital through stock, preferred equity, and convertible debt.
Strategy has acquired 390 BTC for ~$43.4 million at ~$111,053 per bitcoin and has achieved BTC Yield of 26.0% YTD 2025. As of 10/26/2025, we hodl 640,808 $BTC acquired for ~$47.44 billion at ~$74,032 per bitcoin. $MSTR $STRC $STRK $STRF $STRDhttps://t.co/Ipb8nYX4w4
— Strategy (@Strategy) October 27, 2025
S&P also noted that while Bitcoin has performed strongly, its price swings could become a problem. If Bitcoin drops sharply at the same time debt matures, the firm may have to sell Bitcoin at a loss or restructure debt.
What S&P Sees Going Forward
Even with these risks, S&P says the outlook remains stable. The agency expects Strategy to:
- Continue managing debt maturities responsibly
- Maintain access to capital markets
- Keep using equity and debt to pay obligations
S&P does not expect regulators to take actions that disrupt the company’s Bitcoin-focused model.
However, S&P warned the rating could fall further if Bitcoin crashes or the company struggles to raise fresh funds. On the other hand, an upgrade is unlikely soon unless Strategy reduces debt and builds stronger dollar liquidity.
Everybody, please read this as it relates to Strategy’s credit rating.
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
— Adam Livingston (@AdamBLiv) October 27, 2025
Strategy Inc’s bold Bitcoin play has made it a unique company on Wall Street. It is part software firm, part Bitcoin vault. S&P’s rating shows the trade-off: strong upside in Bitcoin bull markets, but financial strain if crypto turns volatile. With billions of debt maturing in the coming years, the company’s ability to raise capital will remain key to its strategy.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
The post S&P Downgrades Strategy to B- for Bitcoin Focus appeared first on Altcoin Buzz.
