Within the first-ever score for a Bitcoin treasury firm, S&P simply rated Michael Saylor’s Technique Inc. a B- junk credit score.
Abstract
- S&P has assigned Technique a B- junk score.
- Score cites Bitcoin publicity, low liquidity, and concentrated danger.
- Marks first-ever score for a Bitcoin treasury-focused firm.
S&P World Rankings has assigned Technique Inc., the Bitcoin-treasury firm previously often known as MicroStrategy, a B- credit standing, inserting it six notches under funding grade.
The report, printed by Bloomberg on Oct. 27, said that the score displays Technique’s deep focus in Bitcoin (BTC) and restricted diversification, in addition to considerations about liquidity and risk-adjusted capitalization.
S&P cites Bitcoin publicity and weak liquidity
Technique Inc., led by Michael Saylor, has spent the previous 5 years remodeling from an enterprise software program agency into an organization constructed round Bitcoin accumulation. It now holds 640,808 BTC, value round $74 billion, making it the world’s largest company holder of the asset.
Based on S&P, Technique is extraordinarily weak to modifications out there due to its important publicity to Bitcoin. Its principal software program enterprise makes little cash and offers little defence in opposition to a decline in cryptocurrency costs. The corporate reported $37 million in unfavorable working money stream through the first half of 2025 and maintains minimal greenback reserves, as most of its treasury is tied up in BTC.
The company additionally highlighted liquidity and forex mismatch dangers. Technique holds about $8 billion in USD-denominated convertible debt maturing between 2028 and 2031, and most well-liked inventory dividends exceed $640 million yearly. A protracted drop in Bitcoin’s worth, S&P warned, may make it tougher for the corporate to fulfill these obligations.
Regardless of these vulnerabilities, S&P maintained a steady outlook, assuming Technique will handle its financing wants via inventory choices and structured debt gross sales, strategies it has used to fund current Bitcoin purchases, together with a current 390 BTC purchase value $43.4 million.
Trade milestone for Bitcoin treasuries
Saylor described the score as a milestone for Bitcoin adoption in conventional finance, noting it was the primary time a significant credit score company had formally evaluated a BTC-focused public firm. He referred to as it a “step towards normalization,” framing the score as recognition relatively than a setback.
Analysts see the transfer as setting a reference level for different Bitcoin-heavy companies similar to Metaplanet and Marathon Digital, which can search comparable evaluations. Whereas the B- B-grade retains Technique in speculative territory, it marks progress in bridging the hole between crypto-based enterprise fashions and conventional capital markets.
Technique rebranded from MicroStrategy earlier this 12 months, totally embracing its identification as a Bitcoin treasury firm. Its third-quarter earnings, due Oct. 30, will provide additional perception into the way it balances debt, money stream, and publicity to the world’s most risky asset.
