Bitcoin Obsession Costs Saylor — S&P Tags Strategy As ‘Junk’

Strategy Inc., the company led by Michael Saylor that rebranded from MicroStrategy, was hit with a junk credit grade on Monday as S&P Global Ratings flagged its heavy concentration in Bitcoin and weak dollar ￰1￱ Reading: Bitcoin Buzz: Michael Saylor Drops ‘Orange Dot Day’ Hint According to S&P, the firm’s balance sheet is tied closely to the price of Bitcoin and carries risks that traditional ratings models find hard to treat as stable ￰2￱ Holdings Drive The Score Based on reports, Strategy’s Bitcoin stack is enormous — about 640,808 BTC on its books — worth roughly $73 billion to $74 billion at recent prices. S&P said that while the company owns a large digital-asset hoard, the volatility of that asset and the company’s limited cash flow make it risky under S&P’s credit rules.

S&P assigned a B- issuer credit rating and kept the outlook ￰3￱ B- places the company squarely in non-investment-grade territory, signaling a higher chance of stress if markets turn against it. 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. ￰0￱ — Michael Saylor (@saylor) October 27, 2025 Currency Mismatch And Debt Pressure Reports have disclosed that S&P was particularly concerned about a mismatch: most obligations are owed in US dollars, but most of the company’s value sits in ￰4￱ gap can force the sale of Bitcoin to meet dollar payments if prices ￰5￱ and commentators pointed to sizable convertible securities and preferred-stock commitments that add cash demands on the ￰6￱ to filings and market write-ups, the firm faces billions of dollars in convertible and preferred obligations spread over coming ￰7￱ and Strategy have made repeat purchases of Bitcoin as part of their stated ￰8￱ buys have created big unrealized gains on paper, but S&P’s methodology largely treats the token differently from traditional equity when measuring risk-adjusted capital.

Liquidity, Access To Markets S&P noted that, for now, Strategy still has access to capital markets, which is why its outlook is stable rather than immediately ￰9￱ the rating agency warned that a sharp drop in Bitcoin’s price or any sudden tightening of funding channels could trigger a further ￰10￱ Reading: $10K Is Coming: Arthur Hayes’ Zcash ‘Vibe Check’ Sparks 30% Moonshot Market participants will watch funding costs, preferred dividend payments and convertible notes for signs of ￰11￱ reacted with mixed signals in early ￰12￱ buyers treated the downgrade as a formal recognition of a known risk, while others judged the move as a calibration that won’t stop Saylor’s accumulation strategy if markets stay ￰13￱ volume and price swings in both Strategy shares and Bitcoin may rise as traders reassess ￰14￱ image from Gemini, chart from TradingView