This article was first published on The Bit Journal: Why did the MSTR stock price double despite being given a dismal S&P credit rating, and what does that say about the status of Bitcoin as a financial asset?

The world’s leading Bitcoin treasury firm, Strategy, saw its MSTR stock price double despite receiving a dismal S&P credit rating of B-. The firm maintained that Strategy’s weak liquidity and narrow focus could easily lead to its future collapse.

According to a post by Strategy on the social media platform X, S&P Global Ratings placed the Bitcoin treasury firm in speculative, non-investment-grade territory — aka “junk-bond” status — despite the outlook remaining stable.  However, Strategy CEO Michael Saylor noted that his company was the first digital asset treasury to receive an S&P credit rating, which, he said, was a clear indication of the company’s ongoing success.

Confidence in Strategy’s Long-Term Strategy

Despite the low rating, which indicates a lack of confidence, Strategy’s MSTR stock price turned positive, rising 2.27%, implying about 114% upside from Friday’s close and suggesting that investors had confidence in the firm’s long-term Bitcoin strategy. The special attention from investors at a time when the S&P credit rating took a dim view could serve as a milestone for the cryptocurrency industry.

The firm defended its decision to give a poor S&P credit rating, citing Strategy’s balance sheet as overwhelmingly tied to Bitcoin and stating that its low dollar liquidity and negative risk-adjusted capital outweighed strong access to prudent debt management and capital markets. S&P opines that the company’s structure creates an inherent currency mismatch: most assets are held in bitcoin, while debt and dividend obligations are denominated in U.S. dollars. Commenting on their report, the firm stated in their press release:

“We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity as weaknesses.”

Facts the S&P Credit Rating Overlooked

In reaction to the rating, Matthew Sigel, head of digital assets research at VanEck, posted on X saying:

“The company can service debt for now, but is vulnerable to shocks.”

However, crypto economics are known to live and die on community hype, and Strategy’s branding could be an “X factor” that the S&P credit rating may not have incorporated into its system. Even now, new digital asset treasury firms are still referred to as “MicroStrategies,” a nod to the original company’s outsized reputation. Also, the S&P credit rating may have overlooked that TradFi is increasingly integrated with the broader crypto industry.

Conclusion

Despite the firm’s dismal S&P credit rating, Strategy assigned it a stable outlook, citing its past success in maintaining access to capital markets and managing debt maturities. With the next major maturity date set for 2028, the Bitcoin treasury firm has room to improve, as long as Bitcoin’s price doesn’t collapse.

Glossary of Key Terms

Strategy: A company that has a dual business model: it sells AI-powered enterprise analytics software, but its primary Strategy is to hold a large amount of Bitcoin on its balance sheet.

MSTR: MSTR is the stock ticker for Strategy Inc. (formerly MicroStrategy).

Bitcoin treasury firm: A publicly traded corporation that holds a significant amount of its corporate assets in Bitcoin as part of its treasury strategy.

Frequently Asked Questions about Strategy and Bitcoin Treasury Companies

What is Strategy (MicroStrategy) famous for?

Initially, the company focused on developing software for data mining and business intelligence. Currently, the firm’s Strategy involves leveraging its balance sheet to acquire BTC as a primary treasury reserve asset.

How do Bitcoin treasury companies work?

At their core, Bitcoin treasury companies are firms dedicated to accumulating a digital asset, regardless of whether that was the business’s original intent.

What is MicroStrategy’s Bitcoin Strategy?

MicroStrategy raises capital through convertible notes to buy Bitcoin, which helps Bitcoin’s price rise as they buy a lot of it. The MSTR stock price rises as the value of their bitcoin assets increases, and with a higher stock price, Strategy can raise even more money and buy more bitcoin.

Read More: S&P Calls It Junk, Market Calls It Gold: Why MSTR Soars 114% With Bitcoin">S&P Calls It Junk, Market Calls It Gold: Why MSTR Soars 114% With Bitcoin

This article was first published on The Bit Journal: Why is Ripple CEO emphasizing the role of XRP in Ripple’s future strategy despite the growing influence of stablecoin RLUSD? Read on to discover.

Ripple CEO Brad Garlinghouse has reaffirmed XRP’s role in Ripple’s future strategy. Saying that XRP wasn’t simply a token, the CEO stated that it was central to Ripple’s entire ecosystem and daily operations.

The Center of Everything Ripple Does

According to a statement by the chief executive on the social media platform X, Garlinghouse said that even as the company continued building other solutions to enable the Internet of Value, the role of XRP remained at the center of everything. He made the statement after completing a $1.25 billion acquisition of the prime brokerage platform Hidden Road, which has since been renamed Ripple Prime. Commenting on Ripple’s future strategy, Garlinghouse stated:

“With today’s close of Hidden Road (now Ripple Prime), Ripple has announced 5 major acquisitions in ~2 years (GTreasury last week, Rail in August, Standard Custody in 2024, Metaco in 2023) […]  As we continue to build solutions to enable an Internet of Value, I’m reminding you all that XRP sits at the center of everything Ripple does. Lock in.”

Grant Greater Access to Traders

Ripple’s future strategy has involved several acquisitions, such as Hidden Road, aimed at strengthening XRP’s role and improving its liquidity. As a result, it will now be easier for users to buy, sell, and use XRP, enabling more individual traders and institutions to access the token.

According to Ripple President Monica Long, “the future ahead is mighty bright,” since the firm intended to use the deal to unlock utility for both XRP and new stablecoin RLUSD. Long noted that RLUSD was already being used as collateral in prime brokerage products and that Ripple Prime was exploring additional ways to use XRP.

The Center of Ripple’s Future Strategy

While stablecoin RLUSD was already receiving increased market focus, Garlinghouse stated that XRP would continue to serve as a bridge asset within its On-Demand Liquidity (ODL) solution, which has now been rebranded as Ripple Payments. Addressing concerns that an emphasis on stablecoin RLUSD would diminish XRP’s role, Garlinghouse reassured the XRP community that XRP would remain at the center of Ripple’s future strategy. He further stated:

“XRP is the heart of Ripple’s strategy. We are committed to ensuring its continued role in our ecosystem.”

Conclusion

Even amid ongoing global expansion and strategic acquisitions, the company’s entire leadership has reassured users that XRP’s role within the Ripple ecosystem remains intact. Garlinghouse states that the token was not simply a cryptocurrency, as Ripple’s future strategy was founded on.

Ripple’s infrastructure has been designed to complement XRP’s utility and ensure that it remains the central cog of the firm’s growing portfolio.

As Ripple’s influence expands globally, it will be interesting to see how the company places the token as central to its success in the digital asset market.

Glossary to Key Terms

Ripple: A blockchain-based digital payment company that has created a network and protocol that uses the cryptocurrency XRP and the XRP Ledger.

XRP: A digital asset that serves as the native cryptocurrency for the XRP Ledger (XRPL), an open-source, decentralized blockchain built for fast and low-cost global payments.

RLUSD: Also known as Ripple USD, it’s the official Ripple stablecoin, pegged 1:1 to the U.S. Dollar and built on the XRP Ledger. Designed for instant payments and institutional use, RLUSD brings together stability, compliance, and speed, connecting the traditional financial world with on-chain liquidity.

Frequently Asked Questions about XRP

 What are the interesting facts about XRP?

XRP is sometimes referred to as “the banker’s coin,” and for that reason, XRP was originally used for sending cross-border remittances. Today, the primary use case for XRP is making high-value cross-border payments.

What Can I Buy or Pay for With XRP?

Online stores, gift card sites, and some businesses accept XRP for goods and services. Many payment gateways (like Bitpay) integrate XRP as a payment method.

Is XRP Used Outside of Crypto Trading?

Yes. Ripple Labs partners with major banks and payment providers to enable XRP for real-world cross-border payments (e.g., remittances and B2B payment services).

Can I use XRP to transfer money overseas?

Yes. XRP is designed for fast, low-cost international transfers. Many remittance services integrate XRP into their workflows.

Read More: Why XRP Still Matters in Ripple’s Strategy Despite RLUSD’s Growing Influence">Why XRP Still Matters in Ripple’s Strategy Despite RLUSD’s Growing Influence

Updated on 24th October, 2025

This article was first published in The Bit Journal.

What could be the driving force behind the sharp outflow, despite Bitcoin and Ethereum ETFs experiencing a $619 million inflow only a few days ago?

Analysts are concerned about a fading momentum in both Bitcoin and Ethereum ETFs, which has led to mass investor outflows. After a combined inflow of at least $619 million last Tuesday, signaling investor confidence, the energy faded the following day, with Bitcoin and Ethereum ETFs recording significant outflows.

A Sense of Fear Prevails in the Market

According to data from Fairside, BlackRock’s IBIT led the outflow from Bitcoin and Ethereum ETFs, with over $100 million exiting the market. This was followed by other ETFs, including Fidelity, Grayscale, Bitwise, VanEck, and Invesco, that recorded smaller inflows that may have helped soften the overall decline. It’s worth noting that the outflows from the Bitcoin and Ethereum ETFs occurred when BTC briefly surged past $111K before retreating to around $108K early Tuesday.

Ethereum ETFs, on the other hand, were also under pressure, recording $145.7M in outflows, extending a three-day streak of withdrawals. According to most analysts, the trend indicates that investors were treading cautiously, balancing short-term price swings and were concerned about broader market volatility.

The optimism experienced earlier in the week proved short-lived, as both Bitcoin and Ethereum ETFs saw outflows. Total withdrawals peaked at $120 million, with Bitcoin funds losing $101.29 million and Ethereum ETFs shedding $18.77 million. Currently, the broader cryptocurrency market sentiment remains cautious, with the Crypto Fear & Greed Index at 27, indicating that fear prevails.

Investor Confidence Fluctuating

The cautious mood is reflected in the continued outflow from Bitcoin and Ethereum ETFs despite prices inching higher. For some reason, investors are hesitant to make any firm commitments due to uncertainty about the market’s short-term direction.

While the general market trend shows active investor interest in spot Bitcoin and Ethereum ETFs, the sentiment keeps fluctuating. The strong rebound on Tuesday shows how quickly capital can flow when investors are confident, while the pullback on Wednesday shows that traders remain cautious.

Conclusion

The latest activity in Bitcoin and Ethereum ETFs comes hot on the heels of mixed performance in the broader cryptocurrency market. Historically, when spot prices rebound, investor confidence flows suggest that institutional traders may still be wary of potential price corrections.

Unlike the spot market, Bitcoin and Ethereum ETFs may react more slowly due to associated fund mechanics, investor reporting schedules, and capital reallocation strategies. The ongoing pullback in Bitcoin and Ethereum ETFs suggests that crypto investment products may behave differently from their underlying tokens.

Glossary to Key Terms

ETFs: Cryptocurrency exchange-traded funds (ETFs) track the price performance of cryptocurrencies by investing in a portfolio linked to their instruments, which can be traded on regular stock exchanges, and investors can hold them in their standard brokerage accounts.

ETF Inflows: Fund flow measures the cash moving into and out of financial assets over specific time periods, often used to understand investor sentiment. Net inflow can signal investor optimism or caution in the market.

ETF Outflows: When ETF shares are converted into the component securities, this is referred to as ETF outflow. ETFs depend on the effectiveness of the arbitrage mechanism for their share prices to track net asset value.

Market rebound: In the world of stocks, a rebound is a period in which prices rise after a prior decline or bearish phase.

Frequently Asked Questions about Bitcoin and Ethereum ETFs

What happened to crypto ETFs on Wednesday?

Bitcoin and Ether ETFs experienced severe outflows they losing $101 million and $19 million, respectively.

Which Bitcoin ETFs were most affected?

The most significant casualties of the outflows were Grayscale’s GBTC, Fidelity’s FBTC, and Ark’s ARKB, which reversed Tuesday’s gains.

Which funds record inflows despite the downturn?

According to available data, BlackRock’s IBIT and ETHA continued to attract strong investor interest despite the ongoing outflows.

What does this mean for the crypto market outlook?

The midweek pullback in crypto ETFs signals that investors were treading cautiously amid ongoing market volatility.

Read More: After $619M Inflow, Bitcoin and Ethereum ETFs Face Sudden $120M Pullback">After $619M Inflow, Bitcoin and Ethereum ETFs Face Sudden $120M Pullback