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 27th October, 205

This article was first published on The Bit Journal.

Kraken revenue has reached unprecedented heights in the third quarter of 2025, marking a pivotal moment for both the exchange and the wider crypto market. The U.S.-based company reported $648 million in revenue and $178.6 million in adjusted EBITDA, a 114% year-over-year increase, underscoring the strength and resilience of its operations.

Derivatives Trading Boosts Kraken Revenue Momentum

Kraken revenue increased 50% quarter over quarter, and adjusted EBITDA increased 124 percent, pushing profit margins to 27.6%, in what analysts term a clear sign of market maturity. 

The exchange recorded a 23 percent increase in volume of trading of $561.9 billion in the last quarter, and currently has over $59.3 billion of client assets. Having 5.2 million funded accounts, Kraken is now on the same level with other major exchanges across the world, such as Coinbase and Binance.

The Kraken revenue growth was impressive and it did not occur in a vacuum. The success of the exchange is a year of strategic growth and product diversification. Its acquisitions of Small Exchange and NinjaTrader have strengthened its dominance in derivatives trading and broadened its access to the U.S market two areas where many competitors continue to have regulatory uncertainty.

Kraken IPO Speculation Gains Strong Momentum

Along the same innovative line, Kraken launched xStocks in collaboration with Backed, which enables investor crowds across 160 countries to trade U.S. equities into a token. 

This innovative act blends conventional finance with Web3 because intermediaries and time constraints on the market have disappeared. Within several months, xStocks has produced over $5 billion in trading volume, which has additionally added to the overall Kraken revenue performance.

The robust Kraken financial results in Q3 have heightened market anticipations of an initial public offering (IPO). In 2025, the company had previously raised $500 million at a valuation of $15 billion and it is said to be undergoing another funding round that would potentially value the company at 20 billion a definite indicator of investor optimism regarding Kraken revenue growth and stability.

Kraken Joins Leading Public Crypto Exchanges

In case it becomes publicly traded in 2026, Kraken would be one of the publicly traded exchanges alongside Coinbase, Bullish and Gemini. However, the clear Proof-of-Reserves system, diversified revenue sources and excellent regulatory position put Kraken in a safer situation compared to most of its counterparts.

The gradually increasing Kraken revenue is more than just an indicator of financial success; it is the general change of the digital asset industry. The quarterly Proof-of-Reserves audits, adoption of distributed validator technology (DVT) to support Ethereum staking, and open reporting have gained the company a lot of institutional credibility.

Kraken Expands Institutional Services Amid Regulation

With the Trump administration becoming increasingly crypto-friendly, the further integration of Kraken into U.S. regulated derivatives and institutional services can further drive Kraken revenue growth in the next few quarters.

Kraken revenue performance can be seen as a manifestation of the vision of a mature crypto company in a volatile and fast-moving landscape that is disciplined, profitable, and at the crossroads of traditional finance and the open economy of Web3.

Conclusion

Kraken’s record-breaking quarter signals more than financial strength it reflects the crypto industry’s steady shift toward institutional maturity. The shift towards a public listing by the exchange appears more and more definite, as it gains regulatory integration, product diversification, and transparency, making Kraken one of the shaping forces of the next stage in the evolution of world digital finance.

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Summary

• Record profits: $648M revenue and $178.6M EBITDA in Q3 2025.
• Innovation: xStocks drives global tokenized equity trading.
• IPO prospects: Kraken eyes a potential 2026 listing.
• Regulatory strength: Transparent audits boost institutional trust.
  

Glossary of Key Terms

Kraken Revenue: Income from trading, staking, and crypto services.

EBITDA: Measure of Kraken’s operational profit.

Derivatives Trading: Crypto futures and options trading.

xStocks: Tokenized U.S. stock trading on Kraken.

Tokenized Equities: Blockchain-based versions of traditional stocks.

Proof-of-Reserves: Audit verifying Kraken’s asset holdings.

DVT (Distributed Validator Technology): Enhances Ethereum staking security.

IPO (Initial Public Offering): Kraken’s potential public listing.

Web3: Decentralized internet with blockchain integration.

Frequently Asked Questions about Kraken’s Market Momentum

1. How much did Kraken earn in Q3 2025?

$648M in revenue and $178.6M in EBITDA.

2. What boosted Kraken’s growth?

Strong trading, derivatives, and xStocks success.

3. Is Kraken planning an IPO?

Yes, a possible 2026 public listing.

4. Why is Kraken different?

Proof-of-Reserves, U.S. regulation, and diversified income.

Read More: Kraken Reports Record $648M in Revenue, Eyes 2026 IPO After Massive Q3 Surge">Kraken Reports Record $648M in Revenue, Eyes 2026 IPO After Massive Q3 Surge