S&P assigns B-minus rating
S&P Global Ratings has given Strategy Inc. (formerly MicroStrategy) a B-minus credit rating, classifying the company as a speculative-grade or “junk-bond” issuer. The agency cited Strategy’s heavy exposure to bitcoin volatility, limited dollar liquidity, and negative risk-adjusted capital, despite the firm’s prudent debt management and continued access to capital markets.
According to S&P, Strategy’s balance sheet creates a currency mismatch since most of its assets are held in bitcoin, while its debts and dividend obligations are denominated in U.S. dollars. This exposes the company to significant financial risk if bitcoin’s price declines.
Comparisons with Sky Protocol
S&P’s rating places Strategy in the same risk category as stablecoin issuer Sky Protocol (formerly MakerDAO), which also received a B-minus rating in August. Both companies share exposure to market liquidity and volatility risks, marking them as high-risk crypto-linked issuers within traditional finance frameworks.
Matthew Sigel, head of digital assets research at VanEck, commented on the rating, noting that Strategy “is able to service debt for now but remains vulnerable to shocks.”
Analysts see long-term upside
Despite S&P’s cautious outlook, TD Cowen analysts remain bullish on Strategy’s long-term trajectory. They reaffirmed their “Buy” rating and set a $620 price target for MSTR stock, suggesting a potential 114% upside from Friday’s close.
Analysts Lance Vitanza and Jonnathan Navarrete highlighted that Strategy continues to “convert market appetite for volatility and return into bitcoin”, emphasizing the steady growth in bitcoin per diluted share as issuance slows.
Bitcoin holdings expected to soar
TD Cowen projects that Strategy could hold nearly 900,000 BTC by 2027, representing over 4% of bitcoin’s total supply. They noted that bitcoin’s deepening integration into mainstream finance, from bank collateral programs to a more supportive stance from the Federal Reserve, may serve as a powerful catalyst for Strategy’s expansion.
Latest bitcoin purchase and market position
Earlier this week, Strategy disclosed the purchase of 390 BTC for $43.4 million, funded through ongoing at-the-market sales of its perpetual preferred stock. This brings its total bitcoin holdings to 640,808 BTC, valued at roughly $74 billion, solidifying its position as the largest public holder of bitcoin—ahead of Marathon, Twenty One Capital, and Metaplanet.
At the time of writing, MSTR shares were trading near $298, up 3% on the day.
