Hold onto your hats, folks! Strive’s Chief Risk Officer, Jeff Walton, just dropped a bombshell about “Digital Credit.” He claims that if rating agencies get a whiff of what Bitcoin (BTC) could actually be worth, MicroStrategy (MSTR) might just leap from junk status to investment-grade faster than you can say “Holy Cryptocurrency, Batman!”
In a mic-drop moment for any finance nerd, Walton aims straight for the disconnect between how credit agencies score Bitcoin treasury companies and the untold treasure they could unlock. It’s like finding out your old baseball card is worth a million bucks!
Bitcoin Valued at Zero on the Balance Sheet? Seriously?
Now, let’s talk about the reigning heavyweight champion of lousy credit ratings: the U.S. credit rating framework led by S&P Global, which has the audacity to slap a value of exactly zero on BTC when it comes to corporate balance sheets. That’s right, folks! Every dollar of dividend and debt-service capacity has to pretend Bitcoin doesn’t exist, kind of like that embarrassing uncle at family gatherings.
To add insult to injury, S&P handed MicroStrategy a B- issuer credit rating back in October 2025, and guess what? They’ve kept the same rating, with a stable outlook, as if they were waiting for the Wi-Fi to reconnect.
S&P Global Ratings has assigned Strategy Inc a ‘B-‘ Issuer Credit Rating (Outlook Stable) – the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency.
– Michael Saylor (@saylor) October 27, 2025
The agency threw shade, citing high Bitcoin concentration, narrow business focus, and low dollar liquidity. I mean, come on! Strategy is sitting on over 761,000 BTC worth around $53 billion as of this writing. That’s a lot of digital coins for a company getting a B-! Talk about a report card that needs a little editing!
Walton insists that if agencies start giving any value to BTC, MicroStrategy’s rating could skyrocket to investment-grade territory. Like a rocket ship fueled by dreams and a sprinkle of financial fairy dust!
Bullish case for Digital Credit:
The DOMINANT US rating framework values Bitcoin as worth ZERO on the balance sheet
Every dollar of dividend capacity has to pencil out as if the Bitcoin doesn’t exist
Yet, @Strategy still have a B- rating. Should the Bitcoin be…
– Jeff Walton (@PunterJeff) March 23, 2026
He declared this as the biggest hurdle separating Bitcoin treasury companies from the big boys’ table of institutional capital. Who knew the financial world had a VIP section?
The 5-to-1 Capital Divide: Don’t You Love Math?
Now, here’s a fun fact: the US investment-grade bond market outweighs the high-yield market by about 5 to 1! Crossing into IG territory would open up a buffet of opportunities for Strategy, like:
- Pension funds (not your grandpa’s money)
- Insurance companies (you know, the folks who make sure your cat is covered)
- IG bond mutual funds (the fancy pants of the investment world)
- Index funds, and
- Bank collateral programs (because banks love their fancy collateral!)
Walton pointed out some recent bond issuances for scale. Google raised $32 billion, Amazon $37 billion, Oracle $25 billion, and Honeywell $16 billion-all at low IG rates. Meanwhile, MicroStrategy is trying to figure out how to bake a cake with no ingredients!
With an investment-grade rating, Strategy could dive into those markets and buy BTC at prices that wouldn’t make your wallet cry.
Walton also noted that a large chunk of BBB-rated traditional corporate debt relies on cash flows that haven’t been stress-tested for AI disruption or margin compression. It’s like trusting a tightrope walker without a safety net!
AND
Large swaths of BBB‑ (Investment Grade) rated corporate and financial debt rely on human capital cash flows that HAVE NOT yet been re‑underwritten for AI‑driven disruption, margin compression, or rising fiscal drag.
Digital Capital & Digital Credit will reprice risk
– Jeff Walton (@PunterJeff) March 23, 2026
He argues that Digital Capital and Digital Credit are like the new superheroes coming to save the day and reprice risk across the entire credit market. Kapow!
Strive Has Skin in the Game-And It’s Not Just Dry Skin!
Now, don’t think Walton is just sitting on the sidelines. Strive threw $50 million into Strategy’s STRC preferred stock on March 11, which is like betting on the underdog in a boxing match-except way less bloody! That’s over one-third of its corporate treasury, yielding approximately 11.5%. Not too shabby!
We have acquired $50 Million in $STRC
We view $STRC as a high-quality credit, offering material yield, higher liquidity, and attractive risk profile over traditional credit instruments for moderate duration capital.
This allocation can deliver +$3.9 Million per year vs T-Bills
– Jeff Walton (@PunterJeff) March 11, 2026
Strive holds roughly 13,628 BTC and manages over $2.5 billion in assets through its subsidiary, Strive Asset Management. It’s like a financial family reunion, where everyone’s related and rich!
Will rating agencies finally wake up and smell the Bitcoin on balance sheets? That is the million-dollar question, folks!
But one thing is crystal clear: the gap between Strategy’s current B- rating and the capital firepower an IG designation would unleash is a plot twist worth watching for investors in this wild ride we call cryptocurrency!
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2026-03-23 11:07