[S&P Downgrades Strategy to Junk Credit Rating Due to High Concentration in Crypto Business and Other Factors]
S&P Global Ratings has downgraded Strategy (formerly MicroStrategy) to a junk credit rating, assigning it a B- rating, six notches below investment grade, with a stable outlook. S&P highlighted issues such as the company's high concentration in cryptocurrency business, narrow business scope, weak risk-adjusted capital strength, and insufficient U.S. dollar liquidity. Strategy holds approximately $74 billion in fair value of Bitcoin, acquired through debt and equity issuance. Although S&P acknowledged the company's ability to manage convertible bonds, it expressed concerns over liquidity risks associated with its debt arrangements. By October 2025, the company is required to pay over $640 million annually in preferred stock dividends, and $5 billion in out-of-the-money convertible bonds will begin maturing in 2028. S&P emphasized that Bitcoin price volatility could exacerbate liquidity pressures when the debt matures.