{"id":13080,"date":"2026-09-11T01:50:24","date_gmt":"2026-09-11T01:50:24","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13080"},"modified":"2026-09-11T01:50:24","modified_gmt":"2026-09-11T01:50:24","slug":"strategy-makes-its-case-to-escape-sps-b-junk-credit-rating","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13080","title":{"rendered":"Strategy makes its case to escape S&P\u2019s B- junk credit rating"},"content":{"rendered":"

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Strategy, the largest Bitcoin treasury firm, is making a case for an escape from its B- junk credit rating after building billions of dollars in liquidity and reducing debt.<\/p>\n

On Sept. 10, Strategy\u2019s head of investor relations, Chaitanya Jain,\u00a0said the Michael Saylor-led company has strengthened its balance sheet in the three areas S&P Global Ratings previously identified as potential paths to an upgrade: dollar liquidity, convertible debt, and capital-market access during Bitcoin stress.<\/span><\/p>\n

S&P affirmed Strategy\u2019s B- issuer credit rating with a stable outlook in December 2025, after initially assigning the grade in October. The rating remains six notches below BBB-, the lowest rung of investment grade.<\/p>\n

Strategy builds the cash cushion S&P wanted<\/h2>\n

The sharpest shift has come in the amount of dollar liquidity sitting between Strategy\u2019s Bitcoin holdings and its financial obligations.<\/p>\n

Jain said dollar liquidity increased from $54 million on Sept. 30, 2025, to $6.54 billion as of Sept. 7, giving the company roughly four years of capacity to fund interest and preferred dividends without relying on Bitcoin sales.<\/p>\n

Strategy\u2019s latest regulatory filing breaks that amount into two pools. Its designated USD Reserve stood at $5.10 billion, while another $1.44 billion was held as USD Cash. The reserve is earmarked for preferred dividends and interest, while the additional cash can also be used for Bitcoin purchases, security repurchases, and other capital-management purposes.<\/p>\n

\"Strategy\"Strategy
Bar chart shows Strategy\u2019s dollar liquidity rising from $54 million in Q3 2025 to $6.54 billion by Sept. 7. Source: Strategy<\/figcaption><\/figure>\n

That leaves Strategy with considerably more flexibility during periods when issuing new securities becomes difficult.<\/p>\n

S&P had identified the company\u2019s liquidity structure as a central weakness because its debt interest, maturities and preferred dividends are payable in dollars while most of its assets are held in Bitcoin. The agency warned that a severe decline in Bitcoin combined with reduced capital-market access could eventually force Strategy to sell the asset at depressed prices.<\/p>\n

The company has also reduced the debt instrument S&P singled out as a potential source of pressure.<\/p>\n

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Related Reading<\/span><\/p>\n

Wall Street piled $1.2 billion into MSTR in Q2 before Strategy turned its Bitcoin flywheel toward rescuing STRC<\/h3>\n<\/p>\n

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Convertible debt has fallen to $6.71 billion from $8.21 billion after Strategy repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May. It paid about $1.38 billion for the notes, an 8% discount to par.<\/p>\n

Jain said net debt, measured against the company\u2019s growing dollar liquidity, has consequently dropped from about $8.16 billion after the third quarter of 2025 to roughly $174 million as of Sept. 7.<\/p>\n