Strategy erased nearly $8 billion of net debt in 11 months and put S&P’s junk rating on the clock

Strategy, the largest Bitcoin treasury firm, is making a case for an escape from its B- junk credit rating after building billions of dollars in liquidity and reducing debt.

On Sept. 10, Strategy’s head of investor relations, Chaitanya Jain, said the Michael Saylor-led company has strengthened its balance sheet in the three areas S&P Global Ratings previously identified as potential paths to an upgrade: dollar liquidity, convertible debt, and capital-market access during Bitcoin stress.

S&P affirmed Strategy’s B- issuer credit rating with a stable outlook in December 2025, after initially assigning the grade in October. The rating remains six notches below BBB-, the lowest rung of investment grade.

Strategy builds the cash cushion S&P wanted

The sharpest shift has come in the amount of dollar liquidity sitting between Strategy’s Bitcoin holdings and its financial obligations.

Jain said dollar liquidity increased from $54 million on Sept. 30, 2025, to $6.54 billion as of Sept. 7, giving the company roughly four years of capacity to fund interest and preferred dividends without relying on Bitcoin sales.

Strategy’s latest regulatory filing breaks that amount into two pools. Its designated USD Reserve stood at $5.10 billion, while another $1.44 billion was held as USD Cash. The reserve is earmarked for preferred dividends and interest, while the additional cash can also be used for Bitcoin purchases, security repurchases, and other capital-management purposes.