S&P International Rankings assigned a ‘B-’ issuer credit standing to bitcoin-juggernaut Technique, reflecting the corporate’s heavy focus in bitcoin and restricted greenback liquidity. The outlook is secure.
S&P mentioned the ranking displays Technique’s “excessive bitcoin focus, slender enterprise focus, weak risk-adjusted capitalization, and low U.S. greenback liquidity.” The corporate reported $8.1 billion in pre-tax earnings within the first half of 2025, nearly fully from appreciation within the worth of its bitcoin holdings.
The agency mentioned of their launch that whereas Technique’s steadiness sheet is dominated by bitcoin, its administration has prudently staggered debt maturities and maintained flexibility by financing primarily with fairness.
In different phrases, this ranking means Technique can meet debt obligations for now however faces important default threat if market situations worsen.
Technique — now successfully a bitcoin treasury firm — raises capital by way of fairness and debt issuances to buy and maintain bitcoin. Its securities give buyers various publicity to bitcoin throughout its capital construction.
Simply at present, founder and former CEO Michael Saylor introduced a purchase order of 390 BTC between October 20 and October 26, spending roughly $43.4 million at a median value of $111,053 per Bitcoin. The agency nonetheless operates a small AI-powered analytics enterprise, although it stays roughly breakeven.
A Technique first
This S&P ranking is the first-ever ranking of a Bitcoin Treasury Firm by a significant credit standing company.
In accordance with S&P, Technique’s risk-adjusted capital ratio was considerably destructive as of June 30, 2025, as a result of the company deducts bitcoin belongings from fairness in its calculation.
Technique reported $8.1 billion in pre-tax earnings within the first half of 2025. Working money circulate in the course of the interval was destructive $37 million.
The company cited a number of key dangers, together with a foreign money mismatch between Technique’s bitcoin-denominated belongings and dollar-denominated obligations resembling curiosity, debt principal, and most well-liked dividends.
S&P additionally pointed to cybersecurity dangers given the corporate’s reliance on custodians to safeguard its bitcoin.
Technique holds bitcoin valued at roughly $70 billion, in opposition to $8 billion in convertible debt, a lot of which matures starting in 2028. Annual most well-liked dividends complete about $640 million, which the corporate plans to fund by way of extra inventory and most well-liked fairness issuance.
Whereas Technique’s entry to capital markets stays a core energy, S&P warned {that a} sharp decline in bitcoin costs or lack of investor confidence might impede its skill to refinance debt or pay dividends, probably resulting in bitcoin gross sales “at severely depressed costs.”
S&P mentioned the ranking may very well be downgraded if entry to markets weakens or debt administration dangers rise. An improve is unlikely until the corporate improves its U.S. greenback liquidity or reduces reliance on convertible debt.
Technique’s trillion-dollar endgame
Earlier this yr, Michael Saylor laid out an bold plan to reshape world finance by way of Bitcoin.
In an interview with Bitcoin Journal, Saylor described an “endgame” through which Technique accumulates a trillion-dollar bitcoin steadiness sheet, rising 20–30% yearly, and makes use of it as the muse for a brand new world credit score system.
On the core of his imaginative and prescient is scale: with sufficient BTC on company steadiness sheets, the long-term appreciation of Bitcoin — traditionally round 21% yearly — would supercharge the capital base.
On high of that, Saylor sees a possibility to difficulty bitcoin-backed credit score at yields considerably increased than conventional fiat-based debt, probably two to 4 proportion factors above company or sovereign charges.
He argued that over-collateralization might make this technique safer than even AAA-rated debt, whereas concurrently fueling broader monetary progress.
Saylor’s imaginative and prescient extends past credit score markets. As Bitcoin turns into embedded in firms, banks, insurers, and sovereign wealth funds, public fairness indexes might progressively turn into oblique bitcoin automobiles.
This, he says, would profit fairness markets and company steadiness sheets whereas introducing increased yields and larger transparency into monetary merchandise.
The implications are broad: financial savings accounts might yield 8–10% as an alternative of near-zero, cash market funds may very well be denominated in bitcoin, and insurance coverage merchandise may very well be reimagined round bitcoin collateral.