S&P Global assigns Strategy a "B-" credit rating, categorizing it as junk bond level but with a stable outlook

On October 28, it was reported that S&P Global Ratings has assigned a "B-" credit rating to the largest bitcoin treasury company, Strategy, categorizing it as speculative and non-investment grade (commonly referred to as "junk bonds")—but at the same time noted that the outlook for this bitcoin treasury company remains stable. In a report released on Monday, S&P stated: "We believe that Strategy's high bitcoin concentration, single business structure, weak risk-adjusted capital strength, and insufficient US dollar liquidity are all weaknesses in its credit profile." Reportedly, Strategy has accumulated a reserve of 640,808 bitcoins through stock and debt financing. S&P pointed out that the stable rating outlook assumes the company will prudently manage convertible bond maturity risks and maintain preferred stock dividend payments, which may require further debt issuance. S&P Global also emphasized that Strategy faces "inherent currency mismatch risk"—all of its debt is denominated in US dollars, while most of its US dollar reserves are used to support the company's software business, which is currently roughly breaking even in terms of revenue and cash flow.