S&P Global Ratings has assigned a 'B-' issuer credit rating to Strategy, a company primarily focused on bitcoin holdings, marking the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency. The outlook for Strategy is stable, reflecting a balanced view of the company's financial standing and operational strategy. S&P highlighted several factors contributing to this rating, including Strategy’s significant concentration in bitcoin, its narrow business focus, weak risk-adjusted capitalization, and limited U.S. dollar liquidity.

The agency elaborated that Strategy's risk-adjusted capital ratio was notably negative as of June 30, 2025, primarily because S&P's calculation methodology deducts bitcoin assets from equity. Key risks identified by S&P include a currency mismatch, where Strategy holds bitcoin-denominated assets against dollar-denominated obligations like interest, debt principal, and preferred dividends. Cybersecurity risks were also noted, given the company's reliance on custodians to safeguard its substantial bitcoin holdings.

Strategy operates effectively as a bitcoin treasury company, raising capital through equity and debt issuances to acquire and hold bitcoin. Its securities are designed to offer investors varying exposure to bitcoin across its capital structure. While the firm still maintains a small AI-powered analytics business, it currently operates at a roughly breakeven level. The company reported pre-tax earnings of $8.1 billion in the first half of 2025, almost entirely driven by the appreciation in the value of its bitcoin holdings. However, operating cash flow during the same period was negative $37 million.

Despite its balance sheet being dominated by bitcoin, Strategy's management has prudently managed its debt, staggering maturities and maintaining financial flexibility by primarily utilizing equity financing. Strategy currently holds bitcoin valued at approximately $70 billion, against $8 billion in convertible debt, a significant portion of which is set to mature starting in 2028. Annual preferred dividends amount to about $640 million, which the company plans to fund through additional stock and preferred equity issuance. Recently, founder and former CEO Michael Saylor announced a purchase of 390 BTC between October 20 and October 26, spending approximately $43.4 million at an average price of $111,053 per Bitcoin.

S&P cautioned that while Strategy's access to capital markets remains a core strength, a sharp decline in bitcoin prices or a loss of investor confidence could impede its ability to refinance debt or pay dividends. Such a scenario could potentially force the company to sell bitcoin at severely depressed prices. The rating could face a downgrade if market access weakens or debt management risks escalate. Conversely, an upgrade is considered unlikely unless Strategy significantly improves its U.S. dollar liquidity or reduces its reliance on convertible debt.

Beyond the immediate financial assessment, Michael Saylor has outlined an ambitious long-term vision for Strategy, which he terms the “trillion-dollar endgame.” Earlier this year, Saylor detailed a plan to reshape global finance by accumulating a trillion-dollar bitcoin balance sheet, growing at an estimated 20–30% annually. This substantial bitcoin holding would serve as the foundation for a new global credit system. Saylor envisions the issuance of bitcoin-backed credit at yields significantly higher than traditional fiat-based debt, potentially two to four percentage points above corporate or sovereign rates. He argues that over-collateralization could make this system even safer than AAA-rated debt, while simultaneously fostering broader financial growth.

Saylor's vision extends to broader implications across the financial ecosystem. As Bitcoin becomes increasingly integrated into the balance sheets of corporations, banks, insurers, and sovereign wealth funds, public equity indexes could gradually transform into indirect bitcoin vehicles. This integration, he suggests, would benefit equity markets and corporate balance sheets by introducing higher yields and greater transparency into financial products. Under this framework, savings accounts could potentially yield 8–10% instead of near-zero rates, money market funds could be denominated in bitcoin, and insurance products could be reimagined around bitcoin collateral.