American credit rating agency S&P Global has given Strategy (formerly MicroStrategy), the largest institutional Bitcoin (BTC) investor, a B- rating, meaning junk. Accordingly, S&P Global Ratings issued a B- junk credit rating to Strategy, indicating that the company is in the “high risk” category. The agency cited the company's heavy reliance on Bitcoin, its weak capital structure relative to its risk profile, and its fragile US dollar liquidity as justification for its rating. S&P Global noted that Strategy's business model (buying and holding Bitcoin as a reserve asset financed through equity and debt) provides investors with indirect exposure to Bitcoin without actually holding it. However, S&P added that the Strategy's Bitcoin concentration continues to dominate its credit profile and introduces risks associated with regulatory actions and market volatility. S&P Global also said it is unlikely to upgrade Stategy's rating in the next 12 months. It added that it could downgrade the rating further if Bitcoin prices fall sharply or the company's access to capital markets weakens. Although S&P gave Global Strategy a rather negative rating, the company's founder, Michael Saylor, pointed out that Strategy was the first Bitcoin treasury company to receive a rating from a major credit rating agency. At this point, the cryptocurrency market is more concerned about Strategy's rating from such a major credit agency than the junk rating it received, calling it a “victory.” Economists believe that for a company in the US to receive a rating from a major rating agency, or even to even reach their analysts' desk, is considered a significant development. Economists also noted that many large funds and companies prefer to invest in companies with rated ratings. According to economists, despite Strategy receiving a junk credit rating from S&P Global Ratings, the rating has placed it in the investment-grade category. S&P Global Ratings previously gave the same B- rating to decentralized stablecoin issuer Sky Protocol (formerly MakerDAO). *This is not investment advice. Continue Reading: US Giant S&P Global Gives Bitcoin Bull Startegy a Junk Rating! Is It Actually a Victory?