Bitcoin Updates: S&P's Speculative Grade Challenges Bitcoin's $74 Billion Corporate Investment
- S&P Global Ratings assigned a historic B- junk rating to Strategy Inc. (formerly MicroStrategy), citing high Bitcoin concentration, limited diversification, and liquidity risks. - The company holds 640,808 BTC ($74B), the largest corporate Bitcoin treasury, while CEO Michael Saylor called the rating a milestone for crypto's financial integration. - S&P warned of volatile exposure to Bitcoin's price swings, yet Strategy maintains a stable outlook if capital access continues for $640M dividends and $8B deb
S&P Global Ratings has broken new ground by awarding a B- speculative grade to
Despite these concerns, Saylor described the rating as a landmark for Bitcoin’s entry into mainstream finance. “This marks the first occasion a major ratings agency has officially reviewed a public company focused on BTC,” he said, noting that the B- grade could draw in new high-yield investors. The company has funded its Bitcoin acquisitions through equity sales and convertible bonds, including a recent purchase of 390 BTC for $43.4 million. Even with S&P’s reservations, Strategy maintains a stable outlook, provided it can keep tapping capital markets to fulfill its commitments, such as $640 million in annual preferred dividends and $8 billion in convertible notes due by 2031, according to
The S&P downgrade comes as debate intensifies over Bitcoin’s place in corporate balance sheets. BitMine’s chairman Tom Lee recently suggested Bitcoin could soar to $1.6–$2 million if it reaches gold’s total market value, while Saylor has predicted a $21 million price within 21 years, according to a
Elsewhere, other companies are increasing their crypto exposure. Strive Inc. (ASST), an asset management firm based in Dallas, saw its shares jump 27% following a series of Bitcoin transactions, including a $675 million purchase of 5,816 BTC and a merger with Semler Scientific, as reported by
Coinbase has recently pointed out vulnerabilities in the corporate Bitcoin treasury sector, observing that
S&P’s assessment highlights the delicate balance between innovation and risk in the crypto investment space. While proponents like Saylor and Lee foresee a future where Bitcoin rivals gold, traditional financial circles remain cautious due to liquidity issues and regulatory ambiguity. For now, Strategy’s junk rating—and the wider DAT industry—will likely remain a contested ground between bullishness and prudence.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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