Strategy, the largest Bitcoin treasury firm, is positioning itself for a potential credit rating upgrade after substantially strengthening its balance sheet over the past 11 months. The company has cut net debt to approximately $174 million from $8.16 billion and accumulated $6.54 billion in dollar liquidity, directly addressing concerns raised by S&P Global Ratings in its December 2025 affirmation of the company's B- issuer credit rating with a stable outlook.
S&P identified three specific areas where Strategy could demonstrate improvement: dollar liquidity, convertible debt levels, and capital-market access during Bitcoin market stress. The company has made measurable progress in each.
Building Dollar Cushion
Dollar liquidity grew from $54 million on September 30, 2025, to $6.54 billion as of September 7, 2026, providing roughly four years of capacity to fund interest and preferred dividends without selling Bitcoin. The company designated $5.10 billion as a USD Reserve for preferred dividends and interest, with an additional $1.44 billion held as USD Cash for other capital-management purposes.
This liquidity buffer directly addresses S&P's previous concern: most of Strategy's obligations are payable in dollars while its assets are predominantly held in Bitcoin. The agency had warned that severe Bitcoin price declines combined with reduced capital-market access could eventually force asset sales at depressed prices.
Reducing Convertible Debt
Strategy reduced convertible debt to $6.71 billion from $8.21 billion after repurchasing $1.5 billion of its 0% convertible senior notes due 2029 in May for approximately $1.38 billion, an 8% discount to par value. This reduction eliminates a potential pressure point S&P had flagged.
Maintaining Capital Access Through Volatility
The company raised $21 billion in common and preferred equity from January through August 2026, securing capital in every month despite significant Bitcoin price volatility. During that period, Bitcoin declined more than 30% and fell below $60,000 before recovering near $80,000.
S&P identified continued market access as central to both downgrade and upgrade scenarios. The agency indicated it could downgrade Strategy if deteriorating Bitcoin prices impaired its ability to raise capital, while upgrades would require sustained funding access through market stress.
Bitcoin Concentration Remains Central Risk
Strategy held 845,050 Bitcoin as of September 9, 2026, acquired for $63.73 billion at an average price of approximately $75,412 per coin. S&P emphasized that this concentration in a single volatile asset, combined with the company's comparatively small software business, limits potential for a higher rating despite improved liquidity metrics.
The rating agency has taken no fresh action since the latest balance-sheet improvements. An upgrade remains unlikely within 12 months from the October 2025 initial rating, extending the window through late October 2026.
