S&P Slaps Michael Saylor’s Bitcoin-Heavy Strategy With B- Junk Rating - Volatility Warning Ignites Debate
Wall Street's rating giants just fired a warning shot across Bitcoin's bow.
The Grade That Stings
S&P Global Ratings assigned MicroStrategy's corporate strategy a B- junk rating, directly citing the company's massive Bitcoin exposure as a fundamental risk. The assessment highlights the growing tension between traditional finance metrics and crypto-native business models.
Bitcoin's Double-Edged Sword
While MicroStrategy's billion-dollar Bitcoin bet generated spectacular returns during bull markets, S&P's analysts remain unconvinced about long-term sustainability. The rating reflects concerns that corporate treasuries packed with volatile digital assets could face liquidity crunches during extended downturns.
Traditional Finance Meets Digital Gold
The B- rating places MicroStrategy firmly in speculative territory, alongside companies that traditional analysts view as having questionable financial stability. Yet another reminder that Wall Street still views Bitcoin holdings as more casino chips than treasury assets.
As rating agencies play catch-up with crypto innovation, one thing's clear: in the high-stakes world of corporate finance, betting the house on digital gold still makes traditional analysts break out in cold sweats.
S&P cites Bitcoin exposure and weak liquidity
Strategy Inc., led by Michael Saylor, has spent the past five years transforming from an enterprise software firm into a company built around Bitcoin accumulation. It now holds 640,808 BTC, worth around $74 billion, making it the world’s largest corporate holder of the asset.
According to S&P, Strategy is extremely vulnerable to changes in the market because of its significant exposure to Bitcoin. Its main software business makes little money and provides little defence against a decline in cryptocurrency prices. The company reported $37 million in negative operating cash flow during the first half of 2025 and maintains minimal dollar reserves, as most of its treasury is tied up in BTC.
The agency also highlighted liquidity and currency mismatch risks. Strategy holds about $8 billion in USD-denominated convertible debt maturing between 2028 and 2031, and preferred stock dividends exceed $640 million annually. A prolonged drop in Bitcoin’s price, S&P warned, could make it harder for the company to meet those obligations.
Despite these vulnerabilities, S&P maintained a stable outlook, assuming Strategy will manage its financing needs through stock offerings and structured debt sales, methods it has used to fund recent Bitcoin purchases, including a recent 390 BTC buy worth $43.4 million.
Industry milestone for Bitcoin treasuries
Saylor described the rating as a milestone for Bitcoin adoption in traditional finance, noting it was the first time a major credit agency had formally evaluated a BTC-focused public company. He called it a “step toward normalization,” framing the rating as recognition rather than a setback.
Analysts see the MOVE as setting a reference point for other Bitcoin-heavy firms such as Metaplanet and Marathon Digital, which may seek similar evaluations. While the B- B-grade keeps Strategy in speculative territory, it marks progress in bridging the gap between crypto-based business models and traditional capital markets.
Strategy rebranded from MicroStrategy earlier this year, fully embracing its identity as a Bitcoin treasury company. Its third-quarter earnings, due Oct. 30, will offer further insight into how it balances debt, cash flow, and exposure to the world’s most volatile asset.
