{"id":52994,"date":"2025-10-28T09:39:51","date_gmt":"2025-10-28T02:39:51","guid":{"rendered":"https:\/\/hbbgroup.net\/sp-hits-strategy-with-b-junk-bond-rating-citing-narrow-bitcoin-focus\/"},"modified":"2025-10-28T09:39:51","modified_gmt":"2025-10-28T02:39:51","slug":"sp-hits-strategy-with-b-junk-bond-rating-citing-narrow-bitcoin-focus","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/zh\/sp-hits-strategy-with-b-junk-bond-rating-citing-narrow-bitcoin-focus\/","title":{"rendered":"S&#038;P hits Strategy with B- \u2018junk bond\u2019 rating, citing narrow Bitcoin focus"},"content":{"rendered":"<div data-v-a8d5a416>\n<p>S&#038;P Global Ratings has given Michael Saylor\u2019s Strategy a \u201cB-\u201d credit rating, placing it in the speculative, non-investment-grade territory \u2014 often referred to as a \u201cjunk bond\u201d \u2014 although it said the Bitcoin treasury company\u2019s outlook remains stable.<\/p>\n<p>\u201cWe view Strategy\u2019s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses,\u201d the credit rating platform <a data-ct-non-breakable=\"null\" href=\"https:\/\/www.spglobal.com\/ratings\/en\/regulatory\/article\/-\/view\/type\/HTML\/id\/3466223\" rel=\"noopener nofollow\" target=\"_blank\">said<\/a> in a review of Strategy on Monday.<\/p>\n<p>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.<\/p>\n<p>S&#038;P Global highlighted that Strategy faces an \u201cinherent currency mismatch,\u201d with all debt due in US dollars while much of its dollar reserves are allocated to fund its software business, which operates at approximately breakeven in earnings and cash flow.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2025-10\/019a2815-0303-74f4-ad4c-95be0055f857\" title><figcaption><em>Source: <\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/x.com\/Strategy\/status\/1982856938703696197\" rel=\"https:\/\/x.com\/Strategy\/status\/1982856938703696197\" target=\"https:\/\/x.com\/Strategy\/status\/1982856938703696197\" title=\"https:\/\/x.com\/Strategy\/status\/1982856938703696197\"><em>Strategy<\/em><\/a><\/figcaption><\/figure>\n<p>The credit rating is significant as it marks the first time a <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/explained\/bitcoin-as-corporate-treasury-why-meta-amazon-and-microsoft-all-said-no?utm_source=chatgpt.com\">Bitcoin\u2011treasury-focused company<\/a> has received an S&#038;P Global assessment \u2014 establishing a benchmark for TradFi to evaluate the credit risk of companies that center their business models around Bitcoin and crypto.<\/p>\n<h2>Strategy is on par with Sky Protocol<\/h2>\n<p>Strategy received the same score as decentralized <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/learn\/articles\/stablecoins-101-what-are-crypto-stablecoins-and-how-do-they-work\">stablecoin issuer<\/a> Sky Protocol, previously MakerDAO, in August. <\/p>\n<p data-ct-non-breakable=\"undefined\">S&#038;P Global pointed to Sky Protocol\u2019s high depositor concentration, centralized governance and weak capitalization to <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/sp-global-b-minus-rating-sky-protocol-defi?utm_source=chatgpt.com\">justify the B-minus rating.<\/a><\/p>\n<p><template data-ct-widget=\"buzzsprout\" data-buzzsprout-podcast-id=\"2040516\" data-buzzsprout-episode-id=\"17948350\"><\/template><\/p>\n<p>Strategy\u2019s B-minus rating will need to bump up six levels \u2014 to BBB-minus \u2014\u00a0 in order to escape the \u201cjunk bond\u201d zone.<\/p>\n<p>The latest rating comes as Strategy was one of the Nasdaq\u2019s best-performing stocks in 2024, rallying 430%. MSTR has, however, retraced 13% so far in 2025, according to Google Finance <a data-ct-non-breakable=\"null\" href=\"https:\/\/www.google.com\/finance\/quote\/MSTR:NASDAQ\" rel=\"noopener nofollow\" target=\"_blank\">data<\/a>.<\/p>\n<p>That includes a 2.27% rise on Monday, indicating that S&#038;P Global\u2019s rating didn\u2019t hurt the company\u2019s share price.<\/p>\n<h2>Strategy must increase US liquidity, reduce reliance on debt\u00a0<\/h2>\n<p>While <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/s-p-global-taps-chainlink-rate-stablecoins-ability-to-retain-peg?utm_source=chatgpt.com\">S&#038;P Global<\/a> said an upgrade in the next 12 months is unlikely, it noted that it could raise the ratings if Strategy improves its US dollar liquidity, eases convertible debt, and continues to demonstrate strong access to capital markets, including when Bitcoin retraces.<\/p>\n<p><em><strong>Related:<\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bcp-first-peruvian-bank-regulated-crypto\"><em><strong> BCP becomes first Peruvian bank to offer regulated crypto access<\/strong><\/em><\/a><\/p>\n<p>However, S&#038;P Global said there\u2019s a risk that Strategy\u2019s convertible debt may be due at a time of a \u201csevere Bitcoin stress,\u201d forcing them to <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/how-to-read-a-bitcoin-liquidation-map-without-getting-liquidated?utm_source=chatgpt.com\">liquidate some of its Bitcoin<\/a> at \u201cdepressed prices.\u201d<\/p>\n<p>Strategy\u2019s score could also fall lower if its access to capital markets weakens, crunching its ability to raise funds and continue its Bitcoin strategy.<\/p>\n<p><em><strong>Magazine:<\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/magazine\/benjamin-wallace-mysterious-mr-nakamoto-review\/\"><em><strong> Mysterious Mr Nakamoto author: Finding Satoshi would hurt Bitcoin<\/strong><\/em><\/a><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\" label=\"Subscription Form: Markets Outlook\"><\/template><\/div>","protected":false},"excerpt":{"rendered":"<p>S&#038;P Global Ratings has given Michael Saylor\u2019s Strategy a \u201cB-\u201d credit rating, placing it in the speculative, non-investment-grade territory \u2014 [&hellip;]<\/p>","protected":false},"author":5,"featured_media":52996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[220],"tags":[],"class_list":["post-52994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tien-dien-tu"],"acf":[],"_links":{"self":[{"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/posts\/52994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/comments?post=52994"}],"version-history":[{"count":0,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/posts\/52994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/media\/52996"}],"wp:attachment":[{"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/media?parent=52994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/categories?post=52994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hbbgroup.net\/zh\/wp-json\/wp\/v2\/tags?post=52994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}