Bitcoin Magazine

Strategy (MSTR) Earns S&P ‘B-’ Rating, Marking a Major Milestone for Bitcoin-Backed Credit

For the first time in financial history, a major credit rating agency has formally evaluated a company built on a bitcoin-backed credit model. In news covered by Bitcoin Magazine, the S&P Global Ratings has assigned Strategy Inc (MSTR) a ‘B-’ Issuer Credit Rating with a Stable outlook, recognizing not just the company, but the emergence of Bitcoin as collateral inside the credit system. This marks a watershed moment for corporate finance. Bitcoin-backed credit is no longer theoretical. It is now a rated financial reality.

Why This Moment Matters

Until now, Bitcoin had been accepted by equity markets, ETFs, and corporate treasury conversations — but credit markets remained untouched. Credit markets are where legitimacy is ultimately decided because they determine who can borrow, at what cost, and against which assets.

By rating Strategy Inc, S&P has implicitly acknowledged:

• Bitcoin can underpin structured debt and preferred equity.
• A bitcoin-backed credit strategy can be modeled, rated, and priced using traditional frameworks.
• Bitcoin is shifting from speculative asset to recognized collateral within corporate capital structures.

This is not a marketing milestone — it is a structural one. Bitcoin has entered the language of risk-adjusted return, yield, and covenants.

How S&P Interpreted Strategy’s Bitcoin-Backed Capital Model

The rating is speculative grade, but the Stable outlook is critical. It signals S&P’s belief that Strategy can continue to service obligations and access capital markets without selling its Bitcoin reserves — a foundational principle of bitcoin-backed credit.

S&P’s analysis mentions several possible weaknesses:

• High concentration of assets in Bitcoin
• Low U.S. dollar liquidity and negative risk-adjusted capital under S&P’s methodology
• Currency mismatch: long Bitcoin, short U.S. dollar debt obligations
• Limited operating cash flow outside software revenue

However, they also credited Strategy with unique structural strengths:

• No near-term debt maturities before 2027–2028
• Proven access to capital markets — both equity and debt
• A capital stack purpose-built to accumulate Bitcoin without diluting shareholders
• Active liability management via convertible debt and preferred stock instruments

In short, S&P is signaling that bitcoin-backed credit can function — if managed with discipline.

Implications for the S&P 500 and Institutional Legitimacy

Strategy Inc met the S&P 500 inclusion criteria in profitability and market capitalization but was passed over in 2024, widely believed to be due to its Bitcoin-heavy balance sheet. That decision now appears less defensible.

With a formal credit rating, the company shifts from “unrated anomaly” to “rated issuer.” For institutional capital, that distinction matters.

• Index committees can now reference a risk rating — not just a narrative.
• Treasury teams and insurers can benchmark exposure to bitcoin-backed credit against traditional corporate debt.
• This increases (not guarantees) the probability of future index inclusion and passive capital flows.

Bitcoin entering equity indices begins with Bitcoin entering the credit models behind them.

Bitcoin-Backed Credit: The Ideal State of Treasury Strategy

This rating does more than validate Strategy — it validates the architecture of bitcoin-backed credit as the superior evolution of corporate treasury management.

Phase 1 was equity-funded Bitcoin accumulation — high growth but shareholder dilution.
Phase 2 introduced convertible debt and preferred equity — allowing companies to acquire Bitcoin through capital markets rather than operating earnings.
Phase 3, now underway, is full institutional recognition of bitcoin-backed credit — rated, benchmarked, and capable of scaling.

This is the endgame:

• Use capital markets to borrow in fiat
• Use proceeds to acquire Bitcoin
• Service liabilities without selling reserves
• Increase Bitcoin-per-share over time, without issuing new common stock

With S&P formally rating Strategy’s issuer credit, this model moves from innovation to infrastructure.

Why Corporate Finance Leaders Need to Pay Attention

This rating does not compel companies to adopt Bitcoin. But it removes the claim that Bitcoin cannot be integrated into traditional credit systems.

From now on:

• Bitcoin can be factored into risk-weighted capital models and treasury policy.
• Credit and liquidity committees must understand how bitcoin-backed credit affects financing costs, refinancing risk, and balance sheet leverage.
• Investors can now compare Bitcoin-based capital structures against other high-yield or hybrid debt strategies.
• Boards can no longer dismiss Bitcoin as “unratable” or “unclassified.”

A New Chapter for Corporate Finance and Capital Markets

What makes this moment different isn’t that another institution “acknowledged” Bitcoin. That’s happened before with ETFs, GAAP accounting changes, and treasury allocations.

What’s different is where the recognition has now occurred: Not in equity markets. Not in payment networks. But in credit — the foundation of corporate finance and monetary systems.

When a credit rating agency like S&P evaluates a company built on Bitcoin, it does three things that have never happened before:

• It forces Bitcoin into risk models normally reserved for banks, sovereigns, and investment-grade corporations.
• It legitimizes bitcoin-backed credit as a structure that can be analyzed, refinanced, and scaled — not dismissed as speculative.
• It signals to other corporates and lenders that they must now understand Bitcoin not as an investment, but as collateral.

This rating does not mean the model is risk-free. It means the model is real enough to underwrite, stress test, and lend against.

That is the real inflection point — not that S&P approved of Bitcoin, but that they were forced to measure it.

Disclaimer: This content was written on behalf of Bitcoin For Corporations. This article is intended solely for informational purposes and should not be interpreted as an invitation or solicitation to acquire, purchase or subscribe for securities.

This post Strategy (MSTR) Earns S&P ‘B-’ Rating, Marking a Major Milestone for Bitcoin-Backed Credit first appeared on Bitcoin Magazine and is written by Nick Ward.

Bitcoin Magazine

One Bitcoin a Day: Prenetics Raises $48M to Accelerate Bitcoin Treasury Strategy

Does one bitcoin a day keep the doctor away?

Prenetics Global Limited (NASDAQ: PRE), a Hong Kong-based health sciences company, announced today the successful pricing of a public equity offering expected to generate approximately $48 million in gross proceeds, with the potential to raise up to $216 million if all accompanying warrants are exercised. 

The capital raise is intended to support the expansion of its supplement brand, IM8, while bolstering Prenetics’ Bitcoin treasury strategy.

The company has a disciplined Bitcoin accumulation plan, purchasing one bitcoin per day since August 1, 2025, and currently holds approximately 275 BTC, valued at $31 million as of October 27.

Prenetics said the offering attracted a distinguished group of institutional and individual investors, including major crypto platforms and financial firms such as Kraken, Exodus (NYSE: EXOD), GPTX by Bitcoin mining pioneer Jihan Wu, American Ventures LLC, XtalPi (2228.HK), DL Holdings (1709.HK), and Mythos Group, among others.

The offering, led by sole placement agent Dominari Securities LLC, consists of 2,992,596 Class A ordinary shares and/or pre-funded warrants, along with Class A and Class B warrants exercisable for up to 5,985,192 additional shares. 

The Class A warrants carry an exercise price of $24.12 — 50% above the offering price of $16.08 — while the Class B warrants are exercisable at $32.16, or a 100% premium. Both warrants are immediately exercisable upon issuance and have five-year terms.

High-profile strategic investors like Aryna Sabalenka, the world No. 1 tennis player, and Adrian Cheng, a prominent Asian entrepreneur, also increased their stakes in the company. David Beckham is also a prominent backer.

Prenetics’ supplement brand IM8 hit $100 million ARR in 11 months and aims for $180–$200 million in 2026 within the $704 billion global market, the company said. 

CEO Danny Yeung highlighted the company’s dual focus on health supplements and cryptocurrency. 

“IM8 has huge global potential, evidenced already by our extraordinary traction across multiple markets. We’re particularly honored to have the backing of a distinguished group of new and existing strategic investors who share our confidence in our dual-engine strategy,” Yeung said. 

Bitcoin accumulation: One bitcoin per day

As mentioned earlier, Prenetics has a Bitcoin accumulation plan, purchasing one bitcoin per day since August 1, 2025, and currently holds approximately 275 BTC, valued at $31 million as of October 27.

Financially, Prenetics will hold roughly $100 million in cash post-offering, bringing its total liquidity — including Bitcoin holdings — to around $131 million. 

The company also plans to review and divest non-core business units to focus resources on IM8 and Bitcoin initiatives.

The offering is expected to close on or around October 28, 2025, pending customary conditions. Prenetics positions itself as pursuing a bold long-term ambition: to reach $1 billion in annual revenue alongside $1 billion in Bitcoin holdings within the next five years, combining health supplement growth with cryptocurrency accumulation as a cornerstone of its corporate strategy.

IM8’s operational performance underscores the brand’s subscription-driven growth model, with more than 12 million servings shipped to over 420,000 customer orders across 31 countries. 

Average order values have risen from $110 to $145 following the launch of IM8’s Daily Ultimate Longevity product, reflecting strong consumer demand for premium offerings.

This post One Bitcoin a Day: Prenetics Raises $48M to Accelerate Bitcoin Treasury Strategy first appeared on Bitcoin Magazine and is written by Micah Zimmerman.