đ¨ THE $48 BILLION MATH ERROR
Strategy Inc. owns 649,870 BTCâover 3% of all Bitcoinâat a total cost of $48.37 billion. But the numbers show their model is unsustainable.
Hereâs why:
⢠They have only $54 million in cash.
⢠$700 million/year owed in preferred stock dividends.
⢠Their software business loses money, so paying dividends requires new capital every year.
⢠In 2025, they raised $19.5B, mostly to service debt, not buy Bitcoin.
This is classic Ponzi-style finance: borrowing to pay prior obligations. It only worked while their stock traded at a premium. That premium collapsed in November 2025ânow equity raises dilute shareholders.
Preferred stock dividends are spiraling: from 9% in July to 10.5% in November, with no ceiling. Confidence breaks â dividends become unsustainable â Bitcoin may have to be sold â market collapses.
đ Key date: Jan 15, 2026
MSCI will decide if companies with >50% in crypto get excluded from indices. Strategy is 77% Bitcoin. JPMorgan estimates $2.8B forced selling, potentially $8.8B total outflows. Algorithms donât care about fundamentalsâ15â20% of market cap could be wiped out.
The October 10 crash was a preview: Bitcoin fell 17%, $19B liquidated in 14 hours. Strategy holds 3.26% of total supplyâany forced sale could break the market.
This isnât about Bitcoin itselfâitâs about whether corporations can hold sovereign-level reserves on 90-day cycles. By March 2026, the market will deliver its verdict: either Strategy survives diminished, or the corporate Bitcoin treasury model fails.
The math is already published. The outcome is already determined. Only recognition remains.
