Overview
- S&P’s first major-agency evaluation of a bitcoin-treasury firm rates Strategy at B- with a stable outlook, treating bitcoin as a volatility source and leaving risk‑adjusted capital deeply negative under its methodology.
- The agency flags a currency mismatch between BTC assets and U.S.-dollar obligations, including roughly $8 billion of convertible debt and about $640 million in annual preferred dividends, with major maturities starting in 2028.
- S&P warns a sharp BTC decline or loss of investor confidence could strain refinancing or dividends and potentially force bitcoin sales at depressed prices, which could trigger a downgrade.
- Strategy reported a new purchase of 390 BTC (~$43.4 million) in late October, bringing holdings to about 640,808 BTC valued near $70–74 billion, while the software unit remains roughly breakeven and first-half operating cash flow was negative $37 million.
- Shares rose following the announcement; investors now look to Thursday’s Q3 results for liquidity and funding signals, while some analysts, including 10X Research, speculate on potential S&P 500 inclusion with a decision expected Dec. 5.