S&P Don Cut MicroStrategy to Junk Over BTC Debt; TD Cowen Dey Bullish

S&P Global Ratings don downgrade MicroStrategy to B- credit rating, say say dem depend too much on Bitcoin (BTC) wey dem finance with debt plus dem no get enough US dollar liquidity. Last week, MicroStrategy put 390 BTC join, now dem get total of 640,808 BTC with $26.6 billion unrealized gain on $47.4 billion wey dem invest. S&P talk say dem get currency mismatch—assets na BTC but liabilities na USD—and warn say no likely make dem upgrade them rating inside 12 months unless MicroStrategy increase USD liquidity, cut convertible debt, and secure capital access. Shares climb 2.3% after announcement but di company still dey risk to force sell BTC if debt maturities align with market downturn. Matthew Sigel from VanEck warn say MicroStrategy fit service their debt now but e dey very sensitive to shocks. On the other side, TD Cowen maintain buy rating with $620 target, dem forecast say BTC reserves fit reach nearly 900,000 by 2027 because of slowing issuance and possible Fed support. Traders suppose balance the bearish credit risks with the bullish long term accumulation forecast.