S&P International Scores has given Michael Saylor’s Technique a “B-” credit standing, putting it within the speculative, non-investment-grade territory — also known as a “junk bond” — though it mentioned the Bitcoin treasury firm’s outlook stays steady.
“We view Technique’s excessive bitcoin focus, slim enterprise focus, weak risk-adjusted capitalization, and low US greenback liquidity as weaknesses,” the credit standing platform mentioned in a evaluation of Technique on Monday.
Technique has gathered its 640,808 BTC treasury primarily through fairness and debt financing. The steady outlook assumes the corporate will prudently handle convertible debt maturities and preserve most popular inventory dividends, doubtlessly by way of extra debt issuance, it mentioned.
S&P International highlighted that Technique faces an “inherent foreign money mismatch,” with all debt due in US {dollars} whereas a lot of its greenback reserves are allotted to fund its software program enterprise, which operates at roughly breakeven in earnings and money circulate.
The credit standing is important because it marks the primary time a Bitcoin‑treasury-focused firm has acquired an S&P International evaluation — establishing a benchmark for TradFi to guage the credit score threat of corporations that middle their enterprise fashions round Bitcoin and crypto.
Technique is on par with Sky Protocol
Technique acquired the identical rating as decentralized stablecoin issuer Sky Protocol, beforehand MakerDAO, in August.
S&P International pointed to Sky Protocol’s excessive depositor focus, centralized governance and weak capitalization to justify the B-minus ranking.
Technique’s B-minus ranking might want to bump up six ranges — to BBB-minus — with the intention to escape the “junk bond” zone.
The newest ranking comes as Technique was one of many Nasdaq’s best-performing shares in 2024, rallying 430%. MSTR has, nevertheless, retraced 13% thus far in 2025, in keeping with Google Finance knowledge.
That features a 2.27% rise on Monday, indicating that S&P International’s ranking didn’t harm the corporate’s share worth.
Technique should enhance US liquidity, scale back reliance on debt
Whereas S&P International mentioned an improve within the subsequent 12 months is unlikely, it famous that it might elevate the rankings if Technique improves its US greenback liquidity, eases convertible debt, and continues to display sturdy entry to capital markets, together with when Bitcoin retraces.
Associated: BCP turns into first Peruvian financial institution to supply regulated crypto entry
Nonetheless, S&P International mentioned there’s a threat that Technique’s convertible debt could also be due at a time of a “extreme Bitcoin stress,” forcing them to liquidate a few of its Bitcoin at “depressed costs.”
Technique’s rating might additionally fall decrease if its entry to capital markets weakens, crunching its capability to boost funds and proceed its Bitcoin technique.
Journal: Mysterious Mr Nakamoto creator: Discovering Satoshi would harm Bitcoin
