Strategy, the world’s largest Bitcoin treasury firm, says it has strengthened its finances enough to make a case for escaping its B- junk credit rating, after building a $6.54bn cash cushion and cutting convertible debt.
The company’s head of investor relations, Chaitanya Jain, said on 10 September that Strategy had improved the three areas S&P Global Ratings previously identified as possible routes to an upgrade: dollar liquidity, convertible debt and access to capital markets during periods of Bitcoin stress.
S&P affirmed Strategy’s B- issuer credit rating with a stable outlook in December 2025, after first assigning the rating in October. The grade remains six notches below BBB-, the lowest investment-grade rating.
Cash reserves increase sharply
Strategy’s dollar liquidity rose from $54m on 30 September 2025 to $6.54bn on 7 September, according to Jain. He said that would cover around four years of interest payments and preferred dividends without the company needing to sell Bitcoin.
The latest regulatory filing showed that the total consisted of a $5.10bn designated USD Reserve and $1.44bn in USD Cash. The reserve is intended for preferred dividends and interest, while the additional cash can also be used for Bitcoin purchases, share repurchases and other capital-management purposes.
S&P had previously highlighted Strategy’s liquidity structure as a key weakness. The company’s interest, debt maturities and preferred dividends must be paid in dollars, while most of its assets are held in Bitcoin. The agency warned that a sharp Bitcoin fall combined with weaker access to capital markets could force Strategy to sell Bitcoin at depressed prices.
Strategy has also reduced its convertible debt, which fell from $8.21bn to $6.71bn after the company repurchased $1.5bn of 0% convertible senior notes due in 2029 in May. The notes were bought for about $1.38bn, an 8% discount to their face value.
Jain said net debt, measured against the company’s dollar liquidity, had fallen from about $8.16bn after the third quarter of 2025 to roughly $174m on 7 September. A company chart put the figure at $170m. Strategy still has billions of dollars in perpetual preferred stock, with dividend commitments that remain part of the liquidity burden considered by S&P.
Fundraising continued during Bitcoin fall
Strategy also points to its ability to raise money during a period of market pressure. Jain said it secured $21bn through common and preferred equity between January and August, raising funds in every month. A company chart recorded the total as $20.92bn, including $3.6bn in August.
During that period, Bitcoin fell by more than 30% and dropped below $60,000. It had recovered to close to $80,000 at the time of publication.
S&P has said it could downgrade Strategy if a weaker Bitcoin price damaged its ability to raise capital or increased the risk that it could not manage out-of-the-money convertible debt. An upgrade would require stronger dollar liquidity, less reliance on convertible debt and continued access to funding through Bitcoin stress.
Bitcoin concentration remains the main obstacle. Strategy held 845,050 BTC on 9 September, bought for $63.73bn at an average price of about $75,412 per coin. S&P said the company’s Bitcoin-heavy treasury and relatively small software business limited the scope for a higher rating.
S&P has taken no new rating action. Jain said: “More liquidity. Less debt. Continued funding access. Any rating upgrade remains S&P’s decision.”
In October 2025, S&P said an upgrade was unlikely within 12 months, a period that runs until late October 2026.
