Strategy, the largest corporate holder of Bitcoin, is beefing up its balance sheet as the company seeks to boost Strategy S&P rating and rise above its present credit grade of B-.
Strategy has been developing a bigger cash buffer in dollars, limiting its debt risks and gaining access to capital markets. These are the three points that S&P Global Ratings noted would be key for a possible rating upgrade for the company.
Chaitanya Jain, the head of investor relations at Strategy, on Sept. 10 announced that the company had made some gains in the three points mentioned.
In December 2025, the S&P Global Ratings agency confirmed the B- rating for Strategy with a stable outlook. This rating was first assigned in October 2025. The Strategy S&P rating still remains six notches below BBB-.
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Strategy S&P Rating Gets Support From Higher Liquidity
The most important change that has contributed to the Strategy S&P rating is the huge rise in the liquidity of the company in terms of dollars.
As per Jain, the liquidity of Strategy in dollars has jumped from $54 million on Sept. 30, 2025, to $6.54 billion as of Sept. 7. The company now has a much bigger buffer, and it can support the cost of interest and preferred stock for about four years without selling any Bitcoin.
Strategy’s latest filing breaks down the above-mentioned liquidity into two major sources. Strategy had USD 5.10 billion in its USD Reserve and an additional USD 1.44 billion in USD Cash.
Strategy Cuts Convertible Debt by $1.5 Billion
The convertible debt has come down from $8.21 billion to $6.71 billion owing to the repurchase of $1.5 billion of 0% convertible senior notes due 2029 by Strategy in May. Strategy paid around $1.38 billion for the notes, which was at an 8% discount on face value.
According to Jain, the net debt in terms of the company’s dollar liquidity of the company has been reduced from around $8.16 billion after Q3 2025 to around $174 million as of September 7.
This figure does not take into account the other debts of Strategy. Strategy still has perpetual preferred stock with billions of dollars and dividend requirements.
The strategy generated revenue of $21 billion from common and preferred equity between January and August 2026, obtaining fresh capital each month.
The higher liquidity, reduced debt level, and availability of funds may improve its creditworthiness. Nevertheless, the rating upgrade will depend on the discretion of S&P.
Why Strategy Needs a Larger Dollar Cushion
The S&P has already pointed out one of the important risks associated with Strategy’s business strategy. Its assets are mainly represented by Bitcoin, whereas the interest on its debts, their maturity dates, and its preferred dividends should be paid in US dollars.
Such an approach can lead to a possible mismatch of its assets and liabilities.
In case Bitcoin depreciated heavily, and access to the capital market became problematic, there would be increasing pressure on Strategy to generate money. And in case of extreme circumstances, it might even have to sell Bitcoin at unfavorable rates.
Liquidity of the dollar allows Strategy more time to work with such situations without necessarily having to sell Bitcoins or raise funds.
This may also enhance the rating of Strategy S&P in the long run since increased liquidity provides more room for maneuverability to meet its obligations during difficult financial situations.
Strategy Continues to Reduce Debt Pressure
Moreover, Strategy has continued to work on the reduction of debt, which was identified by S&P as a possible avenue of pressure on the firm.
Reduced debt helps reduce the cash flow needs to service the debt. With an increased liquidity position, Strategy has increased flexibility in its balance sheet if there are any downturns in Bitcoin prices.
Management of debt is critical for the Strategy S&P rating since S&P looks at the ability of the firm to service its obligations in hard times.
Its advancement in this area, combined with more abundant cash reserves, may be instrumental in addressing some of the issues which previously burdened its credit profile.
Capital-Market Access Remains Important
Access to the capital markets represents another significant driver for the Strategy S&P rating.
The business model that Strategy has developed involves raising capital in order to buy Bitcoin. In the event that the market faces difficulties, such an activity may become increasingly expensive. The fact that the company holds a growing number of dollars is an additional hedge in the event of a crisis.
It is thus the strategy’s aim to prove that it will still be able to manage its financial commitments even as the price of Bitcoin falls, or the state of the capital market deteriorates.
At present, the Strategy S&P rating stands at B- with a stable outlook. Nonetheless, Strategy’s significant improvement in dollar liquidity as well as its debt management may boost chances of a better rating.
The next step will then be contingent upon Strategy’s ability to maintain its liquidity cushion in light of its Bitcoin holdings and financial commitments.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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