Strategy replaced $8.21B of convertible debt with $8.36B in perpetual preferred equity, removing maturities but incurring roughly $876M in annual dividend obligations. With $2.25B in cash and $463.5M in revenue analysts estimate about a 30-month runway and warn the company could “eventually run out of cash” if equity markets close. A $1.01B put on 2028 notes exercisable Sept 2027 could force cash repayment depending on the stock. Experts cite interconnected failure modes: reputational feedback loops from deferred dividends and falling mNAV, high correlation to Bitcoin amplifying downside, and the risk that inability to raise equity could force sales of its ~710,000 BTC holdings, undermining the strategy.

The story is negative because the company swapped convertible debt for $8.36B of perpetual preferred equity that creates roughly $876M/year in dividend obligations while holding only $2.25B cash and $463.5M revenue (analysts estimate ~30-month runway). The article cites a $1.01B put exercisable Sept 2027 that could require cash repayment and warns the company could run out of cash if equity markets shut. It also notes the company holds ~710,000 BTC and experts warn forced sales and high BTC correlation could amplify downside—facts that can directly affect market supply and price.