The post MicroStrategy’s Stock Defies S&P’s B- Rating with Surprising Price Jump appeared on BitcoinEthereumNews.com.

TLDR MicroStrategy stock rose despite receiving a B- credit rating from S&P Global Ratings. S&P highlighted concerns over MicroStrategy’s high Bitcoin concentration and weak liquidity. Michael Saylor framed the low credit rating as a positive milestone for the digital asset treasury sector. The company’s strong access to capital markets and prudent management were viewed as positives by S&P. Despite challenges, MicroStrategy remains committed to buying Bitcoin, even after slowing down purchases. MicroStrategy stock saw a surprising uptick today despite receiving a B- credit rating from S&P Global Ratings. The rating agency expressed concerns about the company’s weak liquidity, narrow focus, and its heavy reliance on Bitcoin. This has raised questions about MicroStrategy’s financial stability, yet its stock price still climbed. Michael Saylor, the company’s CEO, framed the rating as a positive milestone for the crypto industry. He emphasized that MicroStrategy is the first digital asset treasury (DAT) to attract the attention of the rating agency. MicroStrategy Stock Rises Despite S&P’s Concerns S&P’s credit rating reflects several weaknesses within MicroStrategy’s business model. The agency cited the company’s high concentration in Bitcoin, which leaves it vulnerable to market fluctuations. Furthermore, S&P highlighted MicroStrategy’s narrow business focus and weak capitalization, particularly its low liquidity in U.S. dollars. “We view Strategy’s high Bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity as weaknesses,” S&P stated in its press release. While the company’s access to capital markets and prudent capital management were seen as positives, these were not enough to offset the risks. S&P’s evaluation also noted pressure from shareholders, particularly regarding concerns about stock dilution. MicroStrategy’s focus on Bitcoin purchases, despite recent slowdowns, remains a high-risk strategy. S&P’s report made it clear that the company’s challenges are significant and may persist in the near future. Despite the negative credit rating,…

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Filed under: News - @ October 28, 2025 2:20 am