Simply Bitcoin BREAKING: STRATEGY GIVEN FIRST CREDIT RATING BY S&P GLOBAL | EP 1363
Oct 28, 2025
A groundbreaking B-minus rating from S&P Global for a Bitcoin treasury sparks debate on its implications. The hosts dissect why S&P sees Bitcoin as a weakness and how it frames capital risks. They explore the stark contrast between mainstream financial views and the Bitcoin community's reactions. Despite the low grade, the rating marks a significant step in recognizing Bitcoin-backed structures. Additionally, discussions about institutional interest in Bitcoin and a proposed congressional bill aiming to restrict officials from crypto holdings add layers to the conversation.
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Credit Ratings Misread Bitcoin
- S&P gave MicroStrategy a B- issuer credit rating but treated Bitcoin holdings as a capital weakness.
- The rating highlights that traditional credit models view large Bitcoin holdings as risky and uncorrelated to fiat metrics.
Currency Mismatch Penalizes Bitcoin Treasuries
- S&P flagged a long Bitcoin position and short U.S. dollar exposure as an inherent currency mismatch.
- That view penalizes companies for accumulating Bitcoin even when it increases asset value and reduces counterparty risk.
How To Improve A Credit Rating
- To improve ratings, increase U.S. dollar liquidity and reduce reliance on convertible debt.
- Demonstrate durable access to capital markets even during Bitcoin price stress.