S&P World Scores assigned a ‘B-’ issuer credit standing to bitcoin-juggernaut Technique, reflecting the corporate’s heavy focus in bitcoin and restricted greenback liquidity. The outlook is secure.
S&P stated the score displays Technique’s “excessive bitcoin focus, slim enterprise focus, weak risk-adjusted capitalization, and low U.S. greenback liquidity.” The corporate reported $8.1 billion in pre-tax earnings within the first half of 2025, virtually solely from appreciation within the worth of its bitcoin holdings.
The agency stated of their launch that whereas Technique’s stability sheet is dominated by bitcoin, its administration has prudently staggered debt maturities and maintained flexibility by financing primarily with fairness.
In different phrases, this score means Technique can meet debt obligations for now however faces important default threat if market situations worsen.
Technique — now successfully a bitcoin treasury firm — raises capital by fairness and debt issuances to buy and maintain bitcoin. Its securities give buyers various publicity to bitcoin throughout its capital construction.
Simply right this moment, founder and former CEO Michael Saylor introduced a purchase order of 390 BTC between October 20 and October 26, spending roughly $43.4 million at a mean worth of $111,053 per Bitcoin. The agency nonetheless operates a small AI-powered analytics enterprise, although it stays roughly breakeven.
A Technique first
This S&P score is the first-ever score of a Bitcoin Treasury Firm by a significant credit standing company.
In accordance with S&P, Technique’s risk-adjusted capital ratio was considerably unfavourable as of June 30, 2025, as a result of the company deducts bitcoin belongings from fairness in its calculation.
Technique reported $8.1 billion in pre-tax earnings within the first half of 2025. Working money movement in the course of the interval was unfavourable $37 million.
The company cited a number of key dangers, together with a forex mismatch between Technique’s bitcoin-denominated belongings and dollar-denominated obligations corresponding to curiosity, debt principal, and most popular dividends.
S&P additionally pointed to cybersecurity dangers given the corporate’s reliance on custodians to safeguard its bitcoin.
Technique holds bitcoin valued at roughly $70 billion, in opposition to $8 billion in convertible debt, a lot of which matures starting in 2028. Annual most popular dividends complete about $640 million, which the corporate plans to fund by further inventory and most popular fairness issuance.
Whereas Technique’s entry to capital markets stays a core power, S&P warned {that a} sharp decline in bitcoin costs or lack of investor confidence may impede its potential to refinance debt or pay dividends, probably resulting in bitcoin gross sales “at severely depressed costs.”
S&P stated the score may very well be downgraded if entry to markets weakens or debt administration dangers rise. An improve is unlikely until the corporate improves its U.S. greenback liquidity or reduces reliance on convertible debt.
Technique’s trillion-dollar endgame
Earlier this yr, Michael Saylor laid out an formidable plan to reshape international finance by Bitcoin.
In an interview with Bitcoin Journal, Saylor described an “endgame” through which Technique accumulates a trillion-dollar bitcoin stability sheet, rising 20–30% yearly, and makes use of it as the muse for a brand new international credit score system.
On the core of his imaginative and prescient is scale: with sufficient BTC on company stability sheets, the long-term appreciation of Bitcoin — traditionally round 21% yearly — would supercharge the capital base.
On prime of that, Saylor sees a chance to concern bitcoin-backed credit score at yields considerably increased than conventional fiat-based debt, probably two to 4 share factors above company or sovereign charges.
He argued that over-collateralization may make this method safer than even AAA-rated debt, whereas concurrently fueling broader monetary progress.
Saylor’s imaginative and prescient extends past credit score markets. As Bitcoin turns into embedded in firms, banks, insurers, and sovereign wealth funds, public fairness indexes may steadily turn into oblique bitcoin automobiles.
This, he says, would profit fairness markets and company stability sheets whereas introducing increased yields and better transparency into monetary merchandise.
The implications are broad: financial savings accounts may yield 8–10% as a substitute of near-zero, cash market funds may very well be denominated in bitcoin, and insurance coverage merchandise may very well be reimagined round bitcoin collateral.
