PANews reported on October 28th that S&P Global Ratings has assigned Strategy (formerly MicroStrategy) a junk credit rating, citing several weaknesses, including high cryptocurrency concentration, narrow business scope, weak risk-adjusted capitalization, and insufficient U.S. dollar liquidity. The ratings company stated in a statement on Monday that it is rated B-, six notches below investment grade, with a stable outlook. In a post on X, company co-founder Michael Saylor noted that this is the first credit rating received by a Bitcoin asset company in the past five years. S&P credit analysts noted that Strategy holds approximately $74 billion in Bitcoin with a fair value, acquired with proceeds from debt and equity issuance. While S&P commended the company's "prudent" management of convertible bonds, it expressed concern about the liquidity risk of its debt arrangements. Strategy has issued nearly $15 billion in convertible bonds and preferred stock, of which $5 billion are at-the-money convertible bonds, which will mature starting in 2028. The company will also have to pay more than $640 million in preferred stock dividends annually through October 2025. S&P highlighted the liquidity risks of the company's convertible bonds and preferred stock dividends, noting that Strategy's convertible bonds may mature at the same time as Bitcoin prices face pressure.PANews reported on October 28th that S&P Global Ratings has assigned Strategy (formerly MicroStrategy) a junk credit rating, citing several weaknesses, including high cryptocurrency concentration, narrow business scope, weak risk-adjusted capitalization, and insufficient U.S. dollar liquidity. The ratings company stated in a statement on Monday that it is rated B-, six notches below investment grade, with a stable outlook. In a post on X, company co-founder Michael Saylor noted that this is the first credit rating received by a Bitcoin asset company in the past five years. S&P credit analysts noted that Strategy holds approximately $74 billion in Bitcoin with a fair value, acquired with proceeds from debt and equity issuance. While S&P commended the company's "prudent" management of convertible bonds, it expressed concern about the liquidity risk of its debt arrangements. Strategy has issued nearly $15 billion in convertible bonds and preferred stock, of which $5 billion are at-the-money convertible bonds, which will mature starting in 2028. The company will also have to pay more than $640 million in preferred stock dividends annually through October 2025. S&P highlighted the liquidity risks of the company's convertible bonds and preferred stock dividends, noting that Strategy's convertible bonds may mature at the same time as Bitcoin prices face pressure.