Saylor's Strategy the First Bitcoin Treasury Company Rated by Major Credit Agency

What to know:

• S&P Global gave Strategy (MSTR) a B- credit rating, citing high financial risk from its bitcoin-heavy business model and limited dollar liquidity.
• Despite getting a rating deep into junk territory, Strategy Executive Chairman Michael Saylor and others in the bitcoin industry are hailing the action as another step in BTC becoming a traditionally accepted financial asset.
• Many if not most institutional investors cannot invest in corporate paper unless it has a rating from a major credit rating agency.

Strategy (MSTR) received a B- credit rating from S&P Global on Monday. The rating reflects S&P’s view that the company’s business model — centered almost entirely on holding bitcoin — carries significant financial risk, despite its large market cap and strong capital markets access./p>

The lowest investment grade rating in S&P's scale is BBB, making Strategy's B- rating solidly in non-investment grade territory, otherwise known as junk bonds.

According to S&P, a B rating means "speculative credit quality with increased default risk." A B- would thus mean a bit more speculative and a bit more increased default risk, but not as bad as CCC, which means very low credit quality with a high risk of default.

Strategy Executive Chairman Michael Saylor noted that his company has now become the first-ever bitcoin treasury firm to receive a rating from a major credit agency. His thoughts were echoed by others in the industry, among them KindlyMD (NAKA) CEO David Bailey, who said "the market demand for treasury companies is about to explode."

Ratings are often a necessary step for many pension funds and other institutional investors to be able to invest in corporate paper. Stategy is junk-rated now, but future upgrades could open the doors to a lot of funds.

As of mid-2025, Strategy’s bitcoin holdings were valued at roughly $70 billion, compared to about $15 billion in total outstanding convertible debt and preferred equity. But that balance sheet strength is deceiving, S&P said, because Strategy has very little actual cash and almost no reliable operating income. The company's software business is roughly breakeven, and from January to June 2025, Strategy posted negative $37 million in operating cash flow.

S&P also flagged what it called a “currency mismatch.” While the company’s assets are almost entirely in bitcoin, its debts and dividend obligations are in U.S. dollars. That means Strategy could face pressure to sell bitcoin — possibly at a loss — if it can’t raise enough new capital in a downturn. S&P warned that if bitcoin prices drop and investor appetite weakens, the firm could face a liquidity crunch.