Bitcoin Updates: S&P's Speculative Grade Challenges Bitcoin's $74 Billion Corporate Investment

S&P Global Ratings has broken new ground by awarding a B- speculative grade to

Inc., a company centered on Bitcoin and led by Michael Saylor, marking the first time a credit agency has assessed a business structured around a cryptocurrency treasury. This rating highlights worries about the firm's "significant exposure," narrow business scope, and potential liquidity challenges, as reported by . Strategy, formerly known as MicroStrategy, currently holds 640,808 BTC—valued at roughly $74 billion—making it the top corporate holder of Bitcoin. S&P cautioned that the company’s finances are deeply tied to the unpredictable nature of crypto, with its assets largely dependent on Bitcoin’s price and its debts denominated in U.S. dollars, according to a .

Despite these concerns, Saylor described the rating as a landmark for Bitcoin’s entry into mainstream finance. “This marks the first occasion a major ratings agency has officially reviewed a public company focused on BTC,” he said, noting that the B- grade could draw in new high-yield investors. The company has funded its Bitcoin acquisitions through equity sales and convertible bonds, including a recent purchase of 390 BTC for $43.4 million. Even with S&P’s reservations, Strategy maintains a stable outlook, provided it can keep tapping capital markets to fulfill its commitments, such as $640 million in annual preferred dividends and $8 billion in convertible notes due by 2031, according to

.

The S&P downgrade comes as debate intensifies over Bitcoin’s place in corporate balance sheets. BitMine’s chairman Tom Lee recently suggested Bitcoin could soar to $1.6–$2 million if it reaches gold’s total market value, while Saylor has predicted a $21 million price within 21 years, according to a

. These optimistic projections stand in contrast to skepticism from some analysts, who doubt Bitcoin’s ability to maintain rapid growth amid regulatory hurdles and price swings.

Elsewhere, other companies are increasing their crypto exposure. Strive Inc. (ASST), an asset management firm based in Dallas, saw its shares jump 27% following a series of Bitcoin transactions, including a $675 million purchase of 5,816 BTC and a merger with Semler Scientific, as reported by

. CEO Matt Cole described these actions as a way to “outperform Bitcoin over the long term,” though experts warn that “digital asset treasury” (DAT) stocks like ASST are four to five times more volatile than Bitcoin itself.

Coinbase has recently pointed out vulnerabilities in the corporate Bitcoin treasury sector, observing that

acquisitions are dominated by a handful of participants, and that leveraged bets—such as a $19 billion loss in October—could weaken buying support during market downturns, according to a . Despite these dangers, institutions continue to amass Bitcoin as a safeguard against currency devaluation, with Bitplanet’s CEO calling it a “strategic reserve asset.”

S&P’s assessment highlights the delicate balance between innovation and risk in the crypto investment space. While proponents like Saylor and Lee foresee a future where Bitcoin rivals gold, traditional financial circles remain cautious due to liquidity issues and regulatory ambiguity. For now, Strategy’s junk rating—and the wider DAT industry—will likely remain a contested ground between bullishness and prudence.

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