Quick Facts:
- 1️⃣ The Michael Saylor-led Strategy Bitcoin treasury company received a ‘B-’ rating from S&P Global.
- 2️⃣ The rating reflects the risks related to Strategy’s narrow focus on Bitcoin, but S&P also shared its confidence in the company’s ability to meet its financial obligations.
- 3️⃣ S&P’s rating also puts the spotlight not just on Strategy but also on Bitcoin itself and on Bitcoin-related projects featuring the best altcoins.
- 4️⃣ Among these projects is Bitcoin Hyper, which aims to make transaction speeds faster and cheaper within the Bitcoin ecosystem.
Yesterday, leading credit rating agency S&P Global revealed its ‘B-’ rating for Strategy, the world’s largest Bitcoin treasury company.
While the rating still falls under the agency’s ‘speculative grade’ investment, it establishes Strategy’s status as a legitimate investment, although slightly riskier than those with higher ratings.
By extension, it also puts Bitcoin ($BTC) under the radar of investors who wish to dabble in the cryptocurrency either as a direct or indirect holder of the asset.
And for the more risk-on retail investors, this also boosts attention on some of the best altcoins, particularly Bitcoin-related ones like Bitcoin Hyper ($HYPER). See the full context below.
Strategy’s Outlook ‘Stable,’ Says S&P
S&P released its ‘B-’ credit rating for Strategy on October 27, citing its ‘high Bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low US dollar liquidity,’ as weaknesses.
However, the agency added that it’s confident that the Michael Saylor-led treasury company will co
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Author: Bogdan Patru
