Analyst criticizes S&P’s B- rating for Strategy Inc, arguing Bitcoin reserves are undervalued and misunderstood by legacy models.
A well-known crypto analyst has criticized S&P Global Ratings for giving Strategy Inc a ‘B-’ credit rating, claiming the agency’s models fail to accurately assess Bitcoin as a corporate asset.
The analyst said this shows a gap between traditional finance and blockchain-based capital structures.
Analyst Claims S&P Misunderstands Bitcoin Reserves
Adam Livingston, a market analyst focused on digital assets, said S&P’s rating overlooks the financial strength of Strategy Inc’s Bitcoin holdings. He argued that the agency treats Bitcoin growth as a weakness rather than recognizing it as a modern form of treasury reserve.
Everybody, please read this as it relates to Strategy’s credit rating.
It’s hilarious
S&P Global: “we are likely to continue to view capital as a weakness, because Strategy’s bitcoin holdings are likely to grow materially”
So basically “the more Bitcoin they buy, the weaker… pic.twitter.com/vC4khB4sog
— Adam Livingston (@AdamBLiv) October 27, 2025
In a recent statement, Livingston called S&P’s report “hilarious,” quoting a section where the agency said Strategy’s capital is likely to weaken because of its growing Bitcoin balance. He said this shows that traditional credit models do not properly reflect the value of decentralized assets.
S&P Labels Bitcoin Holdings as Capital Weakness
The rating agency stated that Strategy Inc’s capital will remain a weakness because its Bitcoin assets are expected to increase. This aligns with the company’s long-term plan to grow its Bitcoin portfolio. S&P’s report mentioned that the majority of Strategy Inc’s reserves are held in Bitcoin.
Livingston pointed out that if Strategy held U.S. Treasuries instead, those assets would have been marked as high-quality capital. He said S&P’s models still rely on fiat-based logic and do not recognize Bitcoin’s role in a modern treasury. He referred to Bitcoin as “the hardest asset in human history.”
Other Analysts Say S&P Models Are Outdated
Other industry analysts have also joined the discussion. VanEck’s Matthew Sigel said that a B- rating puts Strategy Inc in the high-yield category. He explained that this rating suggests a 15% chance of default over five years.
Strategy Inc Assigned ‘B-‘ Issuer Credit Rating; Outlook Stable at S&P
That’s high-yield territory. Able to service debt for now, but vulnerable to shocks.
S&P data: B issuers carry ~15% 5-yr default risk. https://t.co/ingZu6DRmH pic.twitter.com/RrHOWYmzVG
— matthew sigel, recovering CFA (@matthew_sigel) October 27, 2025
Mason Foard noted that Strategy Inc is now the largest public company with a B- rating. He compared Strategy with companies like cruise lines and automakers, saying Strategy holds more liquid assets and carries less debt than many firms with higher credit ratings.
Investor Response and Market Reaction
Despite the S&P rating, Strategy Inc’s stock rose by 2.27% and traded around $295.63, according to TradingView. This price movement suggests that investors may not view the rating as a major concern.
Livingston stated that S&P’s report reveals how older credit frameworks still do not fully recognize the structure of companies using blockchain-based assets. He said that the growing use of Bitcoin in corporate finance requires an updated model for evaluating credit and risk.
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