S&P Global Ratings announced on Monday that it has assigned Strategy (MSTR.US) a "B-" rating, placing it six notches below investment grade, with a "stable" outlook. The rating reflects the company's high concentration in Bitcoin, undiversified business model, weak risk-adjusted capital, and structural risks such as low dollar liquidity. Michael Saylor, co-founder of the firm, noted on social media that this marks the first-ever rating for a "Bitcoin treasury" company.

S&P analysts highlighted that Strategy holds Bitcoin with a fair value of approximately $74 billion, accumulated through debt and equity financing. While the agency acknowledged the company's "relatively prudent" management of convertible bonds, it flagged "liquidity mismatch risks" in its debt structure as a core concern. Disclosures show Strategy has issued around $15 billion in convertible bonds and preferred shares, including roughly $5 billion in out-of-the-money convertible bonds maturing in 2028. Additionally, starting October 2025, the company must pay over $640 million annually in preferred dividends.

S&P warned that if Bitcoin prices decline while debt maturities coincide, Strategy could be forced to sell Bitcoin at depressed levels or restructure its convertible/preferred debt—actions that would be "tantamount to default." The agency also pointed out a significant "currency mismatch," as the company's assets are primarily Bitcoin-denominated while its debt and dividend obligations are in USD. Strategy has recently relied on issuing common shares to raise cash for interest and dividend payments.

While S&P noted these risks are partially offset by the firm’s "strong capital market access" and "no near-term debt maturities," it emphasized that Bitcoin's market risks are uncorrelated with traditional finance and can be extreme. The report stated, "Given Strategy’s heavy Bitcoin concentration and expected further allocations, we view its capital structure as a long-term weakness."

Earlier on Monday, Strategy disclosed it added $43.4 million worth of Bitcoin over the past week, bringing its total holdings to 640,808 BTC (worth ~$73.7 billion). The company will release its Q3 earnings this Thursday. Shares of Strategy closed up 2.27% at $295.63 on Monday, with a year-to-date gain of ~2%, while Bitcoin has risen 22% over the same period.