S&P Global Ratings has assigned Michael Saylor’s Strategy a B- credit rating, classifying it as speculative or ‘junk bond’ status.

The rating reflects concerns over the firm’s significant bitcoin holdings, narrow business focus, weak risk-adjusted capitalization, and limited US dollar liquidity.

S&P stated in its review:

“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses.”

First S&P rating for bitcoin treasury company

This marks the first time S&P Global has rated a company focused primarily on a bitcoin treasury.

Strategy, which has accumulated 640,808 BTC mostly through equity and debt financing, now sets a benchmark for traditional finance to assess bitcoin-centric business models.

The agency noted the firm’s ‘inherent currency mismatch,’ as all debt is denominated in US dollars, while much of its dollar reserves fund a software business that operates at breakeven.

Comparison to sky protocol

Strategy shares its B- rating with Sky Protocol, a decentralized stablecoin issuer formerly known as MakerDAO.

Both firms were cited for high concentration risks and weak capitalization.

Outlook and upgrade conditions

S&P Global views an upgrade as unlikely in the next 12 months unless Strategy improves its US dollar liquidity, reduces reliance on convertible debt, and maintains strong access to capital markets even during bitcoin price declines.

The agency warned that a severe bitcoin downturn could force Strategy to liquidate some of its bitcoin at low prices to meet debt obligations.

A downgrade is possible if the company’s funding access deteriorates or it cannot continue its bitcoin-focused strategy.

Despite these concerns, Strategy’s stock price has remained resilient, with a 2.27% gain on the day of the announcement, though it has retraced 13% in 2025 after a strong 430% performance in 2024.