Part 9/15:
A systemic flaw: S&P’s logic seems inverted—companies with high debt levels, depreciating assets, and cyclical cash flows are rated similarly to solvent, overcollateralized Bitcoin holdings. These models equate movement with instability, ignoring that true solvency is measured by the ability to meet obligations regardless of volatility in collateral value.
The Significance of the Rating and What It Reveals
The B minus rating is not merely an assessment of Strategy; it’s a reflection of the limitations of legacy credit systems. It indicates that the models cannot accommodate an asset base that moves on-chain in real time, with collateral that appreciates and is auditable at every moment.