S&P assigns Strategy a junk-bond B-minus rating as analysts see MSTR shares doubling

S&P Global Ratings assigned Strategy Inc. (formerly MicroStrategy) a B-minus issuer credit rating with a stable outlook, placing it in junk-bond territory. S&P cited that the company's balance sheet is overwhelmingly tied to bitcoin, leading to low dollar liquidity and negative risk-adjusted capital, which outweighs strong capital market access. This structure creates an inherent currency mismatch since assets are in bitcoin while debt obligations are in U.S. dollars. Despite this speculative rating, TD Cowen reaffirmed its "Buy" rating for MSTR with a $620 price target, implying about 114% upside, as analysts believe Strategy continues to convert market appetite for volatility into bitcoin. Strategy recently purchased 390 BTC, bringing its total holdings to 640,808 BTC, making it the largest public holder of the cryptocurrency.

(Source：The Block)