A landmark development in institutional finance has positioned Bitcoin as viable collateral within the global credit system.

S&P Global Ratings has, for the first time, assigned a corporate bond rating to a company whose debt is directly backed by Bitcoin—Strategy Inc. (MSTR) received a “B-” rating with a Stable outlook on October 27.

S&P’s rating draws analyst attention

Mathew Sigel, head of digital asset research at VanEck, described the rating as:

“That’s high-yield territory. Able to service debt for now, but vulnerable to shocks.”

While S&P highlighted risks stemming from the firm’s “heavy reliance on Bitcoin,” “thin capitalization,” and “fragile dollar liquidity,” market observers argue that the agency’s approach understates Bitcoin’s unique liquidity profile and structural independence.

Bitcoin as collateral: risk or misunderstood opportunity?

Jeff Park, chief investment officer at ProCap BTC, said S&P’s methodology overlooks Bitcoin’s advantages:

“Treating Bitcoin as NEGATIVE capital ignores its incredible liquidity, independence from the rest of the financial system, and all of its hedging properties.”

He further noted that recent accounting and tax rule changes—such as FASB’s ASC 820 and updated US Treasury CAMT guidance—are making it easier for firms to hold and report Bitcoin at fair value.

Institutional access widens for Bitcoin exposure

Credit ratings are a primary gatekeeper for the $130 trillion global fixed-income market.

Until now, most institutional investors were barred from holding Bitcoin directly due to regulatory mandates.

S&P’s move enables these investors to gain indirect Bitcoin exposure through rated debt, rather than through equities or spot Bitcoin ETFs.

Towards a Bitcoin credit market

Beyond lowering Strategy’s borrowing costs, analysts say the rating signals Bitcoin’s entry into the structured finance core.

As more issuers are rated, a “Bitcoin yield curve” could emerge, further integrating the asset into global credit markets.