"For the first time in financial history, a major credit rating agency has formally evaluated a company built on a bitcoin-backed credit model. In news covered by Bitcoin Magazine, the S&P Global Ratings has assigned Strategy Inc (MSTR) a 'B-' Issuer Credit Rating with a Stable outlook, recognizing not just the company, but the emergence of Bitcoin as collateral inside the credit system. This marks a watershed moment for corporate finance.Bitcoin-backed credit is no longer theoretical. It is now a rated financial reality."
"Until now, Bitcoin had been accepted by equity markets, ETFs, and corporate treasury conversations - but credit markets remained untouched. Credit markets are where legitimacy is ultimately decided because they determine who can borrow, at what cost, and against which assets. By rating Strategy Inc, S&P has implicitly acknowledged: Bitcoin can underpin structured debt and preferred equity. A bitcoin-backed credit strategy can be modeled, rated, and priced using traditional frameworks. Bitcoin is shifting from speculative asset to recognized collateral within corporate capital structures."
S&P Global assigned Strategy Inc (MSTR) a B- Issuer Credit Rating with a Stable outlook, representing the first major credit evaluation of a bitcoin-backed credit model. The rating treats Bitcoin as usable collateral in corporate capital structures and indicates that bitcoin-backed credit strategies can be modeled, rated, and priced with conventional frameworks. S&P identified weaknesses including high concentration in Bitcoin, limited U.S. dollar liquidity, a currency mismatch between Bitcoin holdings and dollar debt, and constrained operating cash flow outside software revenue. The Stable outlook signals expected ability to service obligations without selling Bitcoin reserves.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]