CryptoSlate
Strategy, the largest Bitcoin treasury firm, has cut its net debt from roughly $8.16 billion at the end of September 2025 to about $174 million as of Sept. 7, 2026, head of investor relations Chaitanya Jain told investors on Sept. 10. The reduction comes from a combination of dollar liquidity build-up, aggressive convertible debt repurchases, and uninterrupted access to capital markets through a Bitcoin drawdown of more than 30%.
Why it matters
S&P affirmed Strategy's B- issuer credit rating with a stable outlook in December 2025, six notches below BBB-, the lowest rung of investment grade. The agency had identified dollar liquidity, convertible debt reduction, and continued capital-market access during Bitcoin stress as the three paths to an upgrade.
Strategy has now answered each of them. Dollar liquidity rose from $54 million on Sept. 30, 2025 to $6.54 billion by Sept. 7, 2026, enough to fund roughly four years of interest and preferred dividends without selling Bitcoin. The firm repurchased $1.5 billion of its 0% convertible senior notes due 2029 in May for about $1.38 billion, an 8% discount to par, cutting total convertible debt to $6.71 billion. It raised $21 billion across common and preferred equity from January through August, even as Bitcoin briefly traded below $60,000.
Market impact
The timing matters. S&P said in October 2025 that an upgrade was unlikely within 12 months, a window that runs through late October 2026. With all three structural tests now on the table as met, S&P faces a fresh decision on whether the new balance sheet justifies a reassessment.
The hurdle that has not moved is Bitcoin concentration. Strategy holds 845,050 BTC acquired for $63.73 billion at an average price near $75,412 per coin, leaving most of the balance sheet exposed to a volatile asset even after the larger cash cushion. S&P has flagged the company's Bitcoin-heavy treasury and comparatively small software business as the cap on any rating upside. Jain stopped short of predicting an upgrade: 'More liquidity. Less debt. Continued funding access. Any rating upgrade remains S&P's decision.'
Frequently asked questions
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How much net debt did Strategy erase in 11 months?
Strategy's net debt fell from roughly $8.16 billion at the end of Q3 2025 to about $174 million as of Sept. 7, 2026, after dollar liquidity climbed to $6.54 billion and convertible debt was reduced through a $1.5 billion repurchase.
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What is Strategy's current S&P credit rating?
S&P affirmed Strategy's B- issuer credit rating with a stable outlook in December 2025. B- sits six notches below BBB-, the lowest rung of investment grade.
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What are the three tests S&P set for a Strategy upgrade?
S&P identified dollar liquidity, convertible debt reduction, and continued capital-market access during Bitcoin stress as the three paths to an upgrade. Strategy says it has now met all three.
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How much Bitcoin does Strategy currently hold?
Strategy holds 845,050 BTC acquired for $63.73 billion at an average price of about $75,412 per coin, leaving most of its balance sheet exposed to Bitcoin price swings.
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When will S&P reassess Strategy's rating?
S&P said in October 2025 that an upgrade was unlikely within 12 months, a window that runs through late October 2026. Strategy has flagged no specific date for a follow-up review.
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