Overview
- Strategy, formerly MicroStrategy, became the first Bitcoin-focused treasury company rated by a major agency as S&P set its issuer credit rating at B- with a Stable outlook.
- The agency said it excludes Bitcoin from equity in its risk‑adjusted capital measure, leaving Strategy with significantly negative risk‑adjusted capitalization.
- Strategy holds about 640,808 BTC valued around $70–$74 billion and has continued incremental purchases funded largely through equity, convertible debt and preferred stock.
- S&P flagged a currency mismatch and liquidity strain from dollar obligations, including roughly $8 billion in convertibles maturing from 2028 and about $640 million in annual preferred dividends.
- The report warned that a sharp Bitcoin price drop or reduced market access could force distressed sales or refinancings, even as shares rose in initial trading and investors await Q3 results on Oct. 30.