S&P Global Ratings has assigned Strategy a ‘B-‘ credit rating, categorizing it as a speculative or ‘junk bond’ investment, citing significant vulnerabilities tied to its heavy reliance on Bitcoin. The agency highlighted the firm’s concentrated Bitcoin exposure and insufficient U.S. dollar liquidity as primary weaknesses, raising concerns about its financial stability and ability to manage market volatility. This downgrade reflects heightened scrutiny on entities with limited asset diversification, as Bitcoin’s price fluctuations can directly impact their operational resilience and creditworthiness. S&P’s assessment underscores the broader financial industry’s caution toward firms with narrow crypto-focused strategies, emphasizing the need for robust liquidity buffers and balanced portfolios to mitigate risks in evolving digital asset markets.
