S&P Global Downgrades Strategy to “B-”
Credit rating agency S&P Global has officially assigned Michael Saylor’s company Strategy a “B-” rating, classifying it among high-risk or “junk” bonds. The decision highlights the company’s growing exposure to volatility due to its Bitcoin-centric balance sheet.
High Risk, High Yield
According to S&P, Strategy’s structure creates a currency mismatch — while most of its assets are held in Bitcoin (BTC), its debt and dividend obligations remain denominated in U.S. dollars. This makes the company vulnerable to Bitcoin price fluctuations and potential liquidity shortages.
The agency noted that while Strategy maintains some access to capital markets and has responsibly managed its debt maturities, the overall risk of default remains elevated, warranting the junk status.
Slowing Bitcoin Accumulation
Crypto analysts have pointed out that Strategy’s Bitcoin acquisition pace has slowed significantly, with only 778 BTC added in October — one of the lowest monthly additions in recent years. This has fueled online debate about whether the company’s aggressive Bitcoin strategy is beginning to lose momentum.
Balancing Act Between Risk and Reward
Despite the downgrade, some investors see Strategy’s bonds as a high-risk, high-reward opportunity, given the company’s reputation and historical access to funding. However, the report underscores that Bitcoin’s volatility and limited liquidity buffer pose ongoing threats to financial stability.
