Michael Saylor’s Strategy Inc. Receives First-Ever B- Credit Rating for Bitcoin Holdings
Saylor’s Bitcoin Empire – S&P Global Ratings has delivered the first-ever credit evaluation for a Bitcoin-focused public company, assigning Michael Saylor’s Strategy Inc.—formerly known as MicroStrategy—a B- junk credit rating, six notches below investment grade. The announcement, published by Bloomberg on October 27, highlights both the promise and risks of a company heavily concentrated in Bitcoin (BTC).
Bitcoin Holdings Drive Vulnerability
Strategy Inc. has transformed over the past five years from an enterprise software firm into the world’s largest corporate Bitcoin holder, amassing 640,808 BTC, valued at roughly $74 billion. S&P notes that this extreme concentration leaves the company highly susceptible to market fluctuations, while its software operations provide limited revenue defense against crypto price declines.
The agency also flagged liquidity risks and currency mismatches. With about $8 billion in USD-denominated convertible debt maturing between 2028 and 2031, and preferred stock dividends exceeding $640 million annually, a prolonged drop in Bitcoin prices could challenge Strategy’s ability to meet financial obligations. Despite a $37 million negative operating cash flow in H1 2025, S&P assumes Strategy will continue managing financing through stock offerings and structured debt, as it has done to fund recent Bitcoin acquisitions, including a 390 BTC purchase worth $43.4 million.
A Milestone for Bitcoin in Traditional Finance
Michael Saylor framed the B- rating as a positive milestone for Bitcoin adoption in mainstream finance, describing it as a “step toward normalization” rather than a setback. Analysts suggest this evaluation could become a reference point for other Bitcoin-heavy firms like Metaplanet and Marathon Digital seeking similar recognition.
With Strategy fully rebranded and its third-quarter earnings due on October 30, investors and industry watchers will be closely monitoring how the company balances its BTC exposure, cash flow, and debt obligations amid the volatile cryptocurrency market.
