S&P Global Ratings has given Michael Saylor’s Strategy a “B-” credit rating, placing it in the speculative, non-investment-grade territory — often referred to as a “junk bond” — although it said the Bitcoin treasury company’s outlook remains stable.
“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 said in a review of Strategy on Monday.
Strategy has accumulated its 640,808 BTC treasury mainly via equity and debt financing. The stable outlook assumes the company will prudently manage convertible debt maturities and maintain preferred stock dividends, potentially through additional debt issuance, it said.
S&P Global highlighted that Strategy faces an “inherent currency mismatch,” with all debt due in US dollars while much of its dollar reserves are allocated to fund its software…
