Bitcoin exposure
S & P Global Ratings has assigned a B- junk rating to Strategy Inc., primarily due to the company’s exposure to Bitcoin and concerns regarding liquidity. This rating represents the first-ever evaluation for a firm that holds Bitcoin as part of its treasury. The downgrade reflects the inherent risks linked to cryptocurrency investments, particularly in volatile market conditions. Analysts at S & P have noted that liquidity concerns were a significant factor in their decision, suggesting that the company may face challenges in managing its financial obligations effectively. As a result of this rating, investors may reassess their confidence in the firm’s stability and future prospects.
