S & P Global gives Strategy a "B-" credit rating, with a junk bond rating but a stable outlook

On October 28th, S & P Global Ratings has given Strategy, the largest bitcoin treasury company, a "B-" credit rating, placing it in the speculative, non-investment grade (often referred to as "junk bonds") category - but noted that the outlook for the bitcoin treasury company remains stable. "We believe that Strategy's high bitcoin concentration, monolithic business structure, weak risk-adjusted capital strength, and lack of dollar liquidity are weaknesses in its credit profile," S & P said in a report released on Monday. It is reported that Strategy has amassed 640,808 bitcoin reserves through equity and debt financing. S & P noted that the stable rating outlook assumes that the company will prudently manage the maturity risk of convertible bonds and maintain its preference share dividend payments, which may need to be achieved through further debt issuance. S & P Global also highlighted that Strategy faces an "inherent currency mismatch risk" - all of its debt is denominated in US dollars, and most of its US dollar reserves are used to support the company's software business, which is currently roughly breaking even in terms of earnings and cash flow.