Strategy, the leading Bitcoin treasury firm, is advocating for an improvement in its B- junk credit rating after accumulating billions in liquidity and reducing debt.
According to Strategy’s head of investor relations, Chaitanya Jain, the company has bolstered its balance sheet in areas identified by S&P Global Ratings as potential paths to an upgrade: dollar liquidity, convertible debt, and capital-market access during Bitcoin stress.
S&P reaffirmed Strategy’s B- issuer credit rating with a stable outlook in December 2025, maintaining it six notches below BBB-, the lowest investment grade rating.
The most significant change has been in the amount of dollar liquidity between Strategy’s Bitcoin holdings and financial obligations. Dollar liquidity surged from $54 million in September 2025 to $6.54 billion as of September 7, providing the company with approximately four years of capacity to cover interest and preferred dividends without relying on Bitcoin sales.
Strategy’s latest regulatory filing divides this amount into two pools: a $5.10 billion USD Reserve and a $1.44 billion USD Cash. The reserve is designated for preferred dividends and interest, while the cash can also be used for Bitcoin purchases, security repurchases, and other capital-management purposes.
This increased flexibility during challenging periods when issuing new securities becomes challenging is a significant improvement. S&P had previously highlighted the company’s liquidity structure as a primary weakness due to its debt obligations being payable in dollars while most assets are held in Bitcoin.
Convertible debt has decreased from $8.21 billion to $6.71 billion after Strategy repurchased $1.5 billion of its 0% convertible senior notes due in 2029. This move, done at an 8% discount to par, has contributed to reducing net debt from approximately $8.16 billion in Q3 2025 to around $174 million as of September 7.
Despite facing a Bitcoin price decline of over 30% and dropping below $60,000, Strategy managed to raise $21 billion in common and preferred equity from January to August 2026. This indicates that the financing channel S&P was concerned about has remained open during Bitcoin stress.
However, Strategy’s heavy concentration on Bitcoin remains a hurdle for its credit rating. With 845,050 BTC acquired for $63.73 billion at an average price of around $75,412 per coin, the company’s balance sheet is still exposed to the volatility of the cryptocurrency market.
While the recent balance-sheet improvements have provided a different credit profile for assessment, Strategy’s high Bitcoin exposure continues to limit the potential for a higher rating. The question now is whether the improved liquidity and debt profile offer sufficient protection against this risk to warrant a reassessment by S&P.
As of now, S&P has not taken any new rating actions following the balance-sheet changes. The possibility of an upgrade within the next 12 months, as indicated by S&P in October 2025, will be a key development to watch for in the coming months.
