S&P Global Ratings has granted a ‘B-’ credit rating to Strategy, conducting a comprehensive review that highlights vulnerabilities attributed to the firm’s substantial concentration in Bitcoin and insufficient liquidity in U.S. dollars, among other concerns.

“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses,” the credit rating platform stated in its report on Monday.

Strategy has amassed a treasury of 640,808 BTC predominantly through equity and debt financing. The agency noted that the stable outlook is predicated on the company’s prudent management of convertible debt maturities, along with sustaining preferred stock dividends, possibly requiring further debt issuance.

S&P Global also pointed out that Strategy is dealing with a significant currency mismatch; all its debt is denominated in U.S. dollars while a considerable portion of its dollar reserves is being utilized to support a software business operating at approximate breakeven levels in both earnings and cash flow.

Source: Strategy

The credit assessment is noteworthy as it represents the first instance of a Bitcoin-treasury-centric company receiving an S&P Global evaluation, thereby creating a reference point for traditional finance to gauge the credit risk associated with businesses focused on Bitcoin and cryptocurrency.

Strategy in the Same League as Sky Protocol

In August, Strategy achieved a rating identical to that of Sky Protocol, formerly MakerDAO, which was attributed to its elevated depositor concentration and governance structure that lacks decentralization.

For Strategy to exit the ‘junk bond’ categorization, its rating must improve by six levels, reaching a BBB-minus threshold.

This new rating arrives as Strategy was among the top performers on Nasdaq in 2024, witnessing a remarkable 430% rise, though experiencing a 13% decline thus far in 2025, based on data from Google Finance.

While a 2.27% increase on Monday suggests that the rating from S&P Global has not negatively impacted the stock’s value, there are expectations that an upgrade in the next year may be unlikely without improvements in U.S. dollar liquidity and a reduction of convertible debt.

S&P Global indicated that the outlook could improve with better access to capital markets, especially in times when Bitcoin experiences downturns. Furthermore, there exists a risk that Strategy might face pressure to liquidate its Bitcoin holdings, potentially at depressed prices, should its convertible debt maturity coincide with significant market stresses.