Strategy Calls on S&P to Revise Credit Rating

Strategy is making a public case for S&P Global Ratings to reconsider its B- issuer credit rating after substantially increasing dollar liquidity and reducing net leverage. Chaitanya Jain, Strategy’s head of Bitcoin product and investor strategy, argued that several weaknesses identified when the rating was issued have since improved. The rating agency has not announced an upgrade or formal review.

S&P assigned Strategy the B- issuer rating on Oct. 20, 2025, marking a significant step in institutional credit analysis of a Bitcoin treasury company. B- sits within S&P’s speculative-grade category, below the BBB- threshold for investment grade. The rating represents S&P’s assessment of Strategy’s overall ability to meet financial obligations rather than a rating applied automatically to every individual security.

Strategy Says Issues Contributing to the Junk Bond Rating Addressed

The Strategy executive now believes the rating is due for revision, noting that it has turned things around and met all the criteria S&P identified as potentially necessitating a review.

According to Jain, Strategy now has better U.S. Dollar liquidity with its cash reserves going from $54 million in September 2025 to $6.4 billion by September 4, 2026. This translates to sufficient liquidity to cover interest and preferred dividends for over 4 years without selling Bitcoin.

Meanwhile, the firm also noted that its debt load has dropped. Convertible debt fell from $8.21 billion in Q3 of 2025 to $6.71 billion presently, while net debt has dropped from $8.16 billion to $174 million.

Interestingly, Jain added that Strategy’s access to the capital market remains strong, noting that the company raised $21 billion across common and preferred equity between January and August 2026. Continued access to the capital market is one of the conditions highlighted in the S&P report.

Bitcoin Slips to $77,000 As It Remains Stuck in Range

Meanwhile, the Strategy executive also noted that the Bitcoin treasury firm has acquired over 172,000 BTC so far in the 2026 bear market. This is far above the 8,109 BTC it bought during the 2020 market.

This highlights Strategy’s increased capital and its conviction in Bitcoin. Interestingly,  BTC is back at $77,000 after falling almost 2% today. The flagship asset has now fallen by almost 5% in the past seven days, slipping from above $80,000.

The drop in value means BTC is still unable to establish a stable price floor above $80,000. Analysts have stated that Bitcoin needs to trade above $83,000 for a Bitcoin bull market to be confirmed.

The most recent decline comes amidst the return of uncertainty to the market. The US-Iran conflict has intensified again, causing oil prices to climb above $100 for the first time in months.

U.S. inflation data are also trickling in, and some already support speculation that the U.S. Federal Reserve will raise interest rates. The U.S. producer price index rose slightly in August and is up 5.4% from a year ago.

Despite Bitcoin being stuck in a range, stakeholders remain bullish on its long-term prospects. Coinbase CEO Brian Armstrong believes Bitcoin can still reach $400,000 by 2030.

This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency and equity markets remain highly volatile. Readers should conduct independent research before making investment decisions.