{"id":108355,"date":"2025-10-28T13:30:02","date_gmt":"2025-10-28T13:30:02","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=108355"},"modified":"2025-10-28T13:30:02","modified_gmt":"2025-10-28T13:30:02","slug":"bitcoin-obsession-costs-saylor-sp-tags-strategy-as-junk","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=108355","title":{"rendered":"Bitcoin Obsession Costs Saylor \u2014 S&P Tags Strategy As \u2018Junk\u2019"},"content":{"rendered":"

Strategy Inc., the company led by Michael Saylor that rebranded from MicroStrategy, was hit with a junk credit grade on Monday as S&P<\/a> Global Ratings flagged its heavy concentration in Bitcoin and weak dollar liquidity.<\/p>\n

According to S&P, the firm\u2019s balance sheet is tied closely to the price of Bitcoin and carries risks that traditional ratings models find hard to treat as stable collateral.<\/p>\n

Bitcoin Holdings Drive The Score<\/h2>\n

Based on reports, Strategy\u2019s Bitcoin stack<\/a> is enormous \u2014 about 640,808 BTC on its books \u2014 worth roughly $73 billion to $74 billion at recent prices.<\/p>\n

S&P said that while the company owns a large digital-asset hoard, the volatility of that asset and the company\u2019s limited cash flow make it risky under S&P\u2019s credit rules.<\/p>\n

S&P assigned a B- issuer credit rating and kept the outlook stable. That B- places the company squarely in non-investment-grade territory, signaling a higher chance of stress if markets turn against it.<\/p>\n

S&P Global Ratings has assigned Strategy Inc a \u2018B-\u2018 Issuer Credit Rating (Outlook Stable) \u2014 the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency. https:\/\/t.co\/WLMkFqkkCb<\/a><\/p>\n

\u2014 Michael Saylor (@saylor) October 27, 2025<\/a><\/p>\n\n

Currency Mismatch And Debt Pressure<\/h2>\n

Reports have disclosed that S&P was particularly concerned about a mismatch: most obligations are owed in US dollars, but most of the company\u2019s value sits in Bitcoin. This gap can force the sale of Bitcoin<\/a> to meet dollar payments if prices slide.<\/p>\n

Analysts and commentators pointed to sizable convertible securities and preferred-stock commitments that add cash demands on the company. According to filings and market write-ups, the firm faces billions of dollars in convertible and preferred obligations spread over coming years.<\/p>\n

Saylor and Strategy have made repeat purchases of Bitcoin as part of their stated plan. Those buys have created big unrealized gains on paper, but S&P\u2019s methodology largely treats the token differently from traditional equity when measuring risk-adjusted capital.<\/p>\n

Liquidity, Access To Markets<\/p>\n

S&P noted that, for now, Strategy still has access to capital markets, which is why its outlook is stable rather than immediately negative.<\/p>\n

But the rating agency warned that a sharp drop in Bitcoin\u2019s price or any sudden tightening of funding channels could trigger a further downgrade.<\/p>\n

Market participants will watch funding costs, preferred dividend payments and convertible notes for signs of stress.<\/p>\n

Investors reacted with mixed signals in early trading. Some buyers treated the downgrade as a formal recognition of a known risk, while others judged the move as a calibration that won\u2019t stop Saylor\u2019s accumulation strategy if markets stay calm.<\/p>\n

Trading volume<\/a> and price swings in both Strategy shares and Bitcoin may rise as traders reassess odds.<\/p>\n

Featured image from Gemini, chart from TradingView<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Strategy Inc., the company led by Michael Saylor that rebranded from MicroStrategy, was hit with a junk credit grade on Monday as S&P Global Ratings flagged its heavy concentration in Bitcoin and weak dollar liquidity. According to S&P, the firm\u2019s balance sheet is tied closely to the price of Bitcoin and carries risks that traditional […]<\/p>\n","protected":false},"author":0,"featured_media":108356,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-108355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/108355"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=108355"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/108355\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/108356"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=108355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=108355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=108355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}