Overview
- The agency said the B– rating recognizes Strategy’s dependence on capital markets yet assumes it can meet obligations without selling bitcoin in the near term.
- Strategy holds 640,808 BTC as of Oct. 26 and disclosed a 390 BTC purchase in the Oct. 20–26 window for roughly $43.4 million.
- Under S&P’s methodology, bitcoin is excluded from equity in risk-adjusted capital calculations, leaving the company with negative adjusted capital on paper.
- S&P cited about $8 billion in convertible debt largely maturing from 2028 and annual preferred dividends over $640 million as key funding pressures.
- Shares rose after the announcement, and S&P warned that a sharp bitcoin price decline or weaker market access could force asset sales or prompt a downgrade.