Saylor’s Strategy Is Tagged Junk by S&P in Initial Rating

S&P Global Ratings assigned Strategy Inc. a junk level credit rating, citing the enterprise software maker turned Bitcoin accumulator’s high concentration in cryptocurrency, narrow business focus, weak risk-adjusted capitalization and low US dollar liquidity as weaknesses.

The company formerly known as MicroStrategy was rated B-, or six notches below investment grade, with a stable outlook, the credit-rating company said in a statement Monday. Michael Saylor, who co-founded the firm and has overseen the pivot to accumulating Bitcoin over the past five years, noted in a post on X that it was the first-ever rating of a Bitcoin treasury company.