Strategy Seeks Upgrade from Junk Credit Rating with Stronger Balance Sheet

Strategy, the largest Bitcoin treasury firm, is making a case to escape its B- junk credit rating after strengthening its balance sheet in three key areas. In December 2025, S&P Global Ratings affirmed Strategy's B- issuer credit rating with a stable outlook, but noted it remains six notches below BBB-, the lowest rung of investment grade.

The company has increased dollar liquidity to $6.54 billion as of Sept. 7, giving it roughly four years' capacity to fund interest and preferred dividends without relying on Bitcoin sales. This marks a significant shift from $54 million in September 2025. Strategy's regulatory filing breaks down the cash into two pools: its designated USD Reserve stood at $5.10 billion, while another $1.44 billion was held as USD Cash.

The company has also reduced convertible debt to $6.71 billion after repurchasing $1.5 billion of its 0% convertible senior notes due 2029 in May for a price of about $1.38 billion, an 8% discount to par. This reduction in debt has led to a decrease in net debt from approximately $8.16 billion to around $174 million as of Sept. 7.

Strategy's head of investor relations, Chaitanya Jain, said the company has strengthened its balance sheet in the three areas S&P previously identified as potential paths to an upgrade: dollar liquidity, convertible debt, and capital-market access during Bitcoin stress.